Tracy invested $\$ 6000$ at an interest rate of $3 \%$ for 2 years, where the interest was compounded semiannually. If $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$ calculate the accumulated amount.
A)$636.82
B)$12,736.36
C)$6,368.18
D)$25,472.73

Question

Quizplus · Accepted Answer

Substituting the given values into the formula, we have: 
$A = 6000 \left( 1 + \frac {0.03} {2} \right) ^ {2 \cdot 2}$
$A = 6000 \left( 1 + 0.015 \right) ^ {4}$
$A = 6000 \cdot 1.015^{4}$
$A \approx 6,368.18$
Therefore, the answer is choice C.

Tracy Invested $6000\$ 6000$6000 At an Interest Rate Of 3%3 \%3% For 2 Years, Where the Interest Was Compounded Semiannually

Tracy Invested $\$ 6000$ At an Interest Rate Of $3 \%$ For 2 Years, Where the Interest Was Compounded Semiannually