Question

Nat put $550 in an account which pays four percent interest, compounded semiannually. How much will be in the account in three years?

Answer 1

The final answer will be rounding it up to $619.

Step-by-step explanation:

4% = 0.04

1 represents 100%

therefore,

(( 1 + 0.04)^3)x 550

= (1.04^3) x 550

= 1.124864 x 550

= $618.6752

The final answer will be rounding it up to $619.