Answer :
Correct Answer: Option A
Principal Amount = P = $23,400
Interest rate = r = 3% = 0.03
Time = t = 10
Number of compounding periods in a year = n = 2
Compounded amount = A = ?
Formula for compound interest is:
[tex]A = P(1+ \frac{r}{n} )^{t*n} [/tex]
Using the values, we get:
[tex]A=23400(1+ \frac{0.03}{2})^{2*10}=31516.41 [/tex]
Option A is the closest one, so its the correct answer
Principal Amount = P = $23,400
Interest rate = r = 3% = 0.03
Time = t = 10
Number of compounding periods in a year = n = 2
Compounded amount = A = ?
Formula for compound interest is:
[tex]A = P(1+ \frac{r}{n} )^{t*n} [/tex]
Using the values, we get:
[tex]A=23400(1+ \frac{0.03}{2})^{2*10}=31516.41 [/tex]
Option A is the closest one, so its the correct answer