Question

Rachel deposited $200 into an account that earns 6% interest compounded twice a year for 10 years

Answer 1

Answer:

The Answer: is $361.22 Hope this helps gl

Answer 2

In order to calculate compounded interest, we use the formula: Final amount = initial amount x (increase rate)^(time periods). We know that the interest rate is 6%, so the factor we multiply by is 1.06. Moreover, the interest is compounded twice per year. This means that there will a total of 2 x 10 = 20 time periods over which the amount is compounded. Therefore, the final amount works out to be: Final amount = 200(1.06)^20, which is equivalent to $641.