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Find the interest for six months when the principal is $400 at 6% annual interest paid
semi annually (Rounded to two decimals)
O $24.00
O $48.00
O $8.00
O $12.00

Respuesta :

abidemiokin

The interest for six months when the principal is $400 at 6% annual interest paid semi-annually is $12.

Compound interest

The formula for calculating the compound interest is expressed as:

  • A = P(1+r/n)^nt

  • P is the principal = $400
  • t is the time = 0.5 years
  • n is the compounding time = 2
  • r is the rate = 0.06

Substitute to have

A = 400(1+0.06/2)^0.5(2)

A = 400(1+0.03)

A = 400(1.03)

A = $412

Interest = $412 - $400

Inetrest = $12

Hence the interest for six months when the principal is $400 at 6% annual interest paid semi-annually is $12.

Learn more on compound interest here: https://brainly.com/question/24924853

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