Elena is thinking about putting $200 in a savings account that earns 4% interest compounded semiannually. She wants to keep that money in the account for 4 years. Which of the formulas below can help her calculate how much money she will have at the end of the 4 years?

A. $200(1 + 0.04)4
B. $200(1 + 0.02)8
C. $200(1 + 0.02)4
D. $200(1 + 0.08)2

Question

Elena is thinking about putting $200 in a savings account that earns 4% interest compounded semiannually. She wants to keep that money in the account for 4 years. Which of the formulas below can help her calculate how much money she will have at the end of the 4 years?

 		A.	$200(1 + 0.04)4
 		B.	$200(1 + 0.02)8
 		C.	$200(1 + 0.02)4
 		D.	$200(1 + 0.08)2

anonymous · Answer

$$200(1+\frac{.04}{2})^{2\times 4}$$