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 b
Mathematics
shakeshia
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
A) $390.06
B) $420.25
C) $410.06
D) $420.50
2 Answer

1. User Answers mpopella1
the answer is c if you need explaination i can give it 
2. User Answers isyllus
Answer:
She have $ 410.06 in account after 1 year.
Option C is correct
Stepbystep 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.