Answer:
The balance after 1 year is;
$1,014.05
Step-by-step explanation:
To do this, we use the compound interest formula
That will be ;
A =P (1 + r/n)^nt
A is the amount generated which we want to calculate
r is the rate = 1.4% = 0.014
P is the amount deposited = $1,000
n is the number of times it is compounded annually which is 2 (semi-annually means 2 times in a year)
this the number of years which is 1
we have this as:
A = 1,000( 1 + 0.014/2)^(2*1)
A = 1,000(1 + 0.007)^2
A = 1,000(1.007)^2
A = $1,014.05
