$1,200 is deposited today into an account paying 6% interest compounded semiannually.How much interest will have been earned after 25 years?
A) $3,950.24
B) $1,312.53
C) $20,904.19
D) $5,260.69
E) $4,060.69

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc21_f320_a768_2deea83e0680_TB2902_00 FV = 1200 (1 + ( 11ea7fdb_fc21_f321_a768_87060c6f65a8_TB2902_00 ))⁵⁰ = $5260.69 Int earned = $5260.69 - $1200 = $4,060.69

$1,200 Is Deposited Today into an Account Paying 6% Interest