three thousand dollars is deposited at 8 percent interest compounded semiannually. what is the amount in the account at the end of the year?
This is TWO interest periods of 6 months each. (semiannual) the PERIODIC interest is 8/2 = 4
the equation you need is:
FV = PV (1+i)^n i is interest in decimal form (.04) PV is present value (3000) n is periods (2)
FV = 3000 (1+.04)^2 = $ 3244.80
