Mathematics

Question

Marilee takes all the money from her piggy bank and puts it into a savings account at her local bank. The bank promises an annual interest rate of 2.5% on the balance, compounded semiannually. How much will she have after one year if her initial deposit was $400?
A) $390.06
B) $420.25
C) $410.06
D) $420.50

2 Answer

  • the answer is c if you need explaination i can give it

  • Answer:

    She have $ 410.06 in account after 1 year.

    Option C is correct

    Step-by-step explanation:

    Marilee takes all the money from her piggy bank and puts it into a savings account at her local bank.

    We need to find saving amount after 1 year.

    Formula: [tex]A=P(1+\frac{r}{n})^{nt}[/tex]

    Where,

    A is final amount in account.

    P is initial deposit (P=$400)

    r is rate of interest (r=0.025)

    t is time period (t=1)

    n is number of period per year (n=2)

    Now we will substitute the value of P, r, n and t into formula and solve for A

    [tex]A=400(1+\frac{0.025}{2})^{2}[/tex]

    [tex]A=400(1.02515)[/tex]

    A=$ 410.06

    Hence, She have $ 410.06 in account after 1 year.

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