Respuesta :
Sam Monte deposited $21,500 into legal bank, which pays 6% interest that is compounded semiannually at the end of 6 years he will have $30,654.70.
Explain compound interest.
The concept of compound interest states that you can earn interest not just on the money you save, but also on the interest you get.
The frequency of interest payments affects both the rate at which compound interest (or "compounding," as it is frequently termed) increases. The total amount of interest paid over the course of the year will be higher if the interest period is not yearly but rather bi-annual, quarterly, or even monthly. This is due to the fact that interest is being paid on interest accumulated within those shorter time frames.
Compound interest is an effective idea since it allows your funds to increase even if you don't make any more contributions.
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The complete question is mentioned below :
Sam Monte deposits $21,500 into Legal Bank, which pays 6% interest that is compounded semiannually. Using the table in the handbook, what will Sam have in his account at the end of six years?
A. $29,760.30
B. $30,654.70
C. $30,456.07
D. $29,670.03
E. None of these
