The APR of Lillian's savings account is 3.4%, and interest is compounded semiannually. If Lillian makes no additional deposits or withdrawals for an entire year, what will be the balance of her account after all the interest is paid for the year on a principal balance of $9700?

Question

anonymous · Answer

The answer is 
$10,032.60

anonymous · Answer

agreed...interest amt $332.60, do you remember the formula

anonymous · Answer

semiannual... 2twice a yr.. so
Interest earned on $9700.00 is $9700.00 × 0.017 = 164.90
This makes your new pricipal $9700.00 + $164.90 = $9864.90
Current principal is $9864.90
Interest earned on $9864.90 is $9864.90 × 0.017 = 167.70
This makes your new pricipal $9864.90 + $167.70 = $10032.60
In the end, $9700 has turned into $10032.60.
You have made $332.60

I hope this help