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

200(1+0.025/2)^2*1
=205.03