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

hmmmm....

Answer 2

well whats the first step that you have to take?

Answer 3

set up the equation

Answer 4

\(\Large\color{royalblue}{Welcome~to~Openstudy!}\)
That's right. Do you know what the equation will look like? :)

Answer 5

no

Answer 6

\[A = P (1+r)^{nt}\]
Okay. I haven't done this in a while so bear with me. :)
P = principal
r = interest
t = number of years
n = frequency interest is compounded

Using the info we are given, can you plug it all in?

Answer 7

t=1
r=2.5
p=200.00

Answer 8

Remember to correctly change the rate from a percent.
2.5% = 0.025

Answer 9

ohh i got it now

Answer 10

thats where i kept messing up.

Answer 11

Oh, haha :) Great, so think you got it from here? :)

Answer 12

yes thanks its A