Question

Little Miss Buffet 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 $200?

A. $205.00
B. $205.01
C. $205.02
D.$205.03

Answer 1

what is 2.5% of 200$

Answer 2

\[\frac{ 2.5 }{ 100 } \times 200=\]

Answer 3

what would u get?

Answer 4

5

Answer 5

good what is 200+5=

Answer 6

205

Answer 7

see it says "compounded semiannually" so in one year she ll get 205$

Answer 8

Thanks :)

Answer 9

wait i am not sure i am right

Answer 10

oh ok

Answer 11

oright sorry about plz discard my previous answer its wrong i forgot there was a formula for this

Answer 12

\[A=p(1+\frac{ r }{ n })^{nt}\]

Answer 13

p is the initial amount which is 200 in our case
r is the interest rate which is 0.025 always write in decimal form
n is the number of compounding a year which is 2 because every 6 month
t is the year which is 1

Answer 14

plz sub values in formula and u ll get a correct answer :)

Answer 15

\[A=200(1+\frac{ 0.025 }{ 2 })^{2}\]

Answer 16

what u get?

Answer 17

Do I have to solve for A?

Answer 18

The answer is 205.03

Answer 19

yes thats correct

Answer 20

answer is 205.03