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Can you help me solve? Sarah deposited $1,400 for one year at 10% compounded semi-annually. b. What percent interest was added each time?(The lesson is on Compound Interest)



Answer :

Answer:

Given that,

Sarah deposited $1,400 for one year at 10% compounded semi-annually.

Since it is compounded semi annually,

number of compounding periods (n) in a year is 2

interest rate(r) is 10%

we get,

Percent interest added each time is,

[tex]\frac{r}{n}\%=\frac{10}{2}\%[/tex][tex]=5\%[/tex]

Percent interest added each time is 5%.

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