What if Jennifer were to invest $2,750 today,compounded semiannually,with an annual interest rate of 5.25%.What amount of interest will Jennifer earn in one year?

Question

Quizplus · Accepted Answer

The interest earned can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = $2,750, r = 0.0525, n = 2 (semiannual), and t = 1 year. The interest earned is A - P. Calculating gives A = $2,896.27, so the interest is $2,896.27 - $2,750 = $146.27.

What If Jennifer Were to Invest $2,750 Today,compounded Semiannually,with an Annual