If Mr. Chips, Inc. invests $2,400,000 today at 6% annual interest and the money is compounded semiannually, how much will be in the bank account one year from the date invested?
A) $2,472,000
B) $2,544,000
C) $2,546,160
D) $2,547,273

Question

Quizplus · Accepted Answer

Amount at end of 6 months: $2,400,000 + ($2,400,000 × 6% × 6/12) = $2,472,000
Amount at end of 12 months: $2,472,000 + ($2,472,000 × 6% × 6/12) = $2,546,160

If Mr Chips, Inc