Answer:
Please check the explanation.
Step-by-step explanation:
a) How much will you have at the middle of the first year?
Principle P = $300
Annual rate r = 6% = 0.06 per year
Compound n = Semi-Annually = 2
Time (t in years) = 0.5 years
Total amount = A = ?
Using the formula
![A\:=\:P\left(1+\frac{r}{n}\right)^{nt}](https://tex.z-dn.net/?f=A%5C%3A%3D%5C%3AP%5Cleft%281%2B%5Cfrac%7Br%7D%7Bn%7D%5Cright%29%5E%7Bnt%7D)
substituting the values
![A=300\left(1+\frac{0.06}{2}\right)^{\left(2\right)\left(0.5\right)}](https://tex.z-dn.net/?f=A%3D300%5Cleft%281%2B%5Cfrac%7B0.06%7D%7B2%7D%5Cright%29%5E%7B%5Cleft%282%5Cright%29%5Cleft%280.5%5Cright%29%7D)
![A=300\cdot \frac{2.06}{2}](https://tex.z-dn.net/?f=A%3D300%5Ccdot%20%5Cfrac%7B2.06%7D%7B2%7D)
![A=\frac{618}{2}](https://tex.z-dn.net/?f=A%3D%5Cfrac%7B618%7D%7B2%7D)
$
Therefore, the total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 6% per year compounded 2 times per year over 0.5 years is $ 309.00.
Part b) How much at the end of one year?
Principle P = $300
Annual rate r = 6% = 0.06 per year
Compound n = Semi-Annually = 2
Time (t in years) = 1 years
Total amount = A = ?
Using the formula
![A\:=\:P\left(1+\frac{r}{n}\right)^{nt}](https://tex.z-dn.net/?f=A%5C%3A%3D%5C%3AP%5Cleft%281%2B%5Cfrac%7Br%7D%7Bn%7D%5Cright%29%5E%7Bnt%7D)
so substituting the values
![A\:=\:300\left(1+\frac{0.06}{2}\right)^{\left(2\right)\left(1\right)}](https://tex.z-dn.net/?f=A%5C%3A%3D%5C%3A300%5Cleft%281%2B%5Cfrac%7B0.06%7D%7B2%7D%5Cright%29%5E%7B%5Cleft%282%5Cright%29%5Cleft%281%5Cright%29%7D)
![A=300\cdot \frac{2.06^2}{2^2}](https://tex.z-dn.net/?f=A%3D300%5Ccdot%20%5Cfrac%7B2.06%5E2%7D%7B2%5E2%7D)
$
Therefore, the total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 6% per year compounded 2 times per year over 1 year is $ 318.27.