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Nostrana [21]
3 years ago
11

Elena is thinking about putting $200 in a savings account that earns 4% interest compounded semiannually. She wants to keep that

money in the account for 4 years. Which of the formulas below can help her calculate how much money she will have at the end of the 4 years?
A. $200(1 + 0.02)8
B. $200(1 + 0.04)4
C. $200(1 + 0.02)4
D. $200(1 + 0.08)2
Mathematics
2 answers:
Nastasia [14]3 years ago
8 0
I’m not 100% bc/ I learned this last semester, but I think it’s B. So sorry if I’m wrong. I think this bc/ 0.04 is the interest rate as a percent, 4 is the time, 200 is the amount of money, and the one shows that it is exponential growth.
dem82 [27]3 years ago
5 0

Answer:

A. \$200(1 + 0.02)^8

Step-by-step explanation:

Since, the amount that compounded semiannually is,

A=P(1+\frac{r}{2})^{2t}

Where, P is the principal amount,

r is the annual rate ( in decimals ),

And, t is time ( in years ),

Here, P = $ 200,

r = 4 % = 0.04    ( 1 % = 0.01 ),

t = 4 years,

Hence, the amount after 4 years would be,

A=200(1+\frac{0.04}{2})^{2\times 4}

=200(1+0.02)^8

⇒ First option is correct.

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