Question

Jessica deposits $300 into a savings
account that pays an annual interest rate
of 2%, compounded twice a year. How
much money will Jessica have in her
account at the end of one year?

Answer 1

This is related to a formula known by the name of "continuous compounding".\[300(1 + 0.02)^{2} \]Do you understand how I got that?

Answer 2

no

Answer 3

Since you are adding stuff to 300, you have 1 + ....
0.02 is equal to 2%
And finally, you are compounding it twice a year in a year, so it'd be compounded two times.

Answer 4

hmmmm

Answer 5

300(1 +...) = 300 + 300(....) right? So you are adding to 300.

Answer 6

ANNUAL interest rate of 2% means in half a year you get half of 2% namely 1%

Answer 7

Ooooh, nice catch.

Answer 8

so it should be \(300(1.01)^2\)

Answer 9

thanks

Answer 10

I'd embrace Wolfram and financial advisors for this problem

Answer 11

... and @satellite73 too