Question

Ana is thinking about putting $200 in a savings account that earns 4% interest compounded semiannually. She wants to keep that money in the account for 2 years. Which of the formulas below can help her calculate how much money she will have at the end of the 2 years?

Answer 1

Compound interest formula:
A = P * ( 1 + r/n ) ^(n t)
In this case:
A = $200 * ( 1 + 0.04/2 )^(2*2) =
= $200 * ( 1.02)^4 =
= $200 * 1.08243 = $216.49
Answer: At the end of the 2 years she will have $216.49.  

Answer 2

Answer:

$200(1+0.02)^4 -- APEX

Explanation:

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