Answer: the account earns interest of $40.16
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 875.83
r = 9% = 9/100 = 0.09
n = 12 because it was compounded 12 times in a year.
t = 6 months = 6/12 = 0.5 year
Therefore,.
A = 875.83(1+0.09/12)^0.5 × 12
A = 875.83(1+0.0075)^6
A = 875.83(1.0075)^6
A = 915.99
The interest that she earns is
915.99 - 875.83 = $40.16
