If you invest $100 at 8% for one year,compounded semiannually,at the end of the year your balance will be (Use time value tables or financial calculator)

Question

Quizplus · Accepted Answer

Using the formula for compound interest:
A = P (1 + r/n)^(nt), where
A = final amount
P = principal (initial amount)
r = annual interest rate (as a decimal)
n = number of times compounded per year
t = time in years
Plugging in the given values:
A = 100(1+(0.08/2))^(2*1)
A = 100(1.04)^2
A = 100(1.0816)
A = $108.16
So, the balance at the end of the year would be $108.16, which is option C.

If You Invest $100 at 8% for One Year,compounded Semiannually,at