Question

Francisco has a savings account of $2,033.88. The interest at a rate of 3.9% compounded twice a year. What will the account balance be in 11 years?
A. $770.94
B. $932.18
C. $1,567.15
D. $1,975.81

Answer 1

Amount = P(1 + r/t)^nt = 2033.88(1 + 0.039/2)^(11 x 2) = 2033.88(1 + 0.0195)^22 = 2033.88(1.0195)^22 = 2033.88(1.5294) = $3110.60