Suppose you invest $3,500 today,compounded semiannually,with an annual interest rate of 8.50%.What amount of interest will you earn in one year?
A)$303.82
B)$307.12
C)$309.13
D)$313.82

Question

Quizplus · Accepted Answer

The interest earned in one year with semiannual compounding is calculated using the formula: A = P(1 + r/n)^(nt) - P. Here, P = $3,500, r = 0.085, n = 2, t = 1. The interest is $303.82.

Suppose You Invest $3,500 Today,compounded Semiannually,with an Annual Interest Rate