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 is the ending balance, P is the principal, r is the interest rate, n is the number of times compounded per year, and t is the time in years.

Plugging in the values given:
A = 100(1 + 0.08/2)^(2*1)
A = 100(1.04)^2
A = 108.16

Therefore, the balance at the end of the year will be $108.16, which corresponds to choice C.

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