Question

How much money will you have at the end of one year if interest is compounded semiannually at 10% on a $600 deposit?

Answer 1

The formula required to answer this is:
$A=P(1+\frac{r}{n})^{nt}$
where  A is the amount of the principal P after n compounding periods per year at r interest rate (as a decimal fraction).
Plugging in the given values, we get:
$A=600(1+\frac{0.1}{2})^{2\times1}=661.5$
Rounding to the nearest dollar, we get $662.00. Therefore a is the best answer choice.