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klasskru [66]
1 year ago
13

Nora's savings account has a balance of $3979. After 4 years, what will the amount of interest be at 12% compounded semiannually

? a. $2367.92 c. $2362.92 b. $4774.80 d. $2353.92
Mathematics
2 answers:
alexgriva [62]1 year ago
7 0
The correct answer is C.<span>$2362.92</span>
guapka [62]1 year ago
4 0

Answer:

Option C  I=\$2,362.92

Step-by-step explanation:

we know that

The compound interest formula is equal to  

A=P(1+\frac{r}{n})^{nt}  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal  

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

t=4\ years\\ P=\$3,979\\ r=0.12\\n=2  

substitute in the formula above  

A=\$3,979(1+\frac{0.12}{2})^{2*4}  

A=\$6,341.92  

Find the amount of interest

I=\$6,341.92-\$3,979=\$2,362.92

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