The APR of Deloris' savings account is 3.8%, and interest is compounded semiannually. If the principal in Deloris' savings account were $13,700 for an entire year, what would be the balance of her account after all the interest is paid for the year?

A. $13,752.06
B. $13,752.11
C. $14,225.55
D. $14,220.60

Question

The APR of Deloris' savings account is 3.8%, and interest is compounded semiannually. If the principal in Deloris' savings account were $13,700 for an entire year, what would be the balance of her account after all the interest is paid for the year?

 		A.	$13,752.06
 		B.	$13,752.11
 		C.	$14,225.55
 		D.	$14,220.60

koikkara · Answer

i would try it like this...

13700(1 + .038/2)^2

13700(1 + .019)^2

13700(1.019)^2

13700(1.0380361)

14225.55