Question 1201119
.Sara deposited $1400 for 1 year at 10%, compound semiannually.
b. What percent interest was added each time?
c. What was the balance in Sara's account at the end of 1 year?
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(b)  What percent interest was added each time?


     Two semi-annual compounding produce the effective increase per year

          {{{1+0.1/2)^2}}} = {{{1+0.05)^2}}} = {{{1.05^2}}} = 1.1025,

     so the effective interest per year is  10.25%.



(c)  What was the balance in Sara's account at the end of 1 year?


     The balance in Sara's account at the end of 1 year is

         {{{1400*(1 + 0.1/2)^2}}} = {{{1400*1.05^2}}} = 1543.50 dollars.
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Solved.  Both questions are answered.