Question

Erica invests $2744 in a savings account for 4 years that earns 1.0% compounded semi-annually.

How much money in total will she have earned at the end of 4 years?

Answer 1

$A=P(1+r/100)^n$

$r=1/2=0.5\%$ $n=2\times 4=8$

$A=2744(1+0.5/100)^8=2744\times 1.0407=\$2855.6808$