Answer:
[tex]\$203.01[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
After 6 months
[tex]t=6/12=0.5\ years\\ P=\$100\\r=2\%=2/100=0.02[/tex]
substitute in the formula above
[tex]A_1=100(1+0.02*0.5)[/tex]
[tex]A_1=100(1.01)[/tex]
[tex]A_1=\$101[/tex]
At the end of one year
[tex]t=6/12=0.5\ years\\ P=A_1+\$100=\$101+\$100=\$201\\r=2\%=2/100=0.02[/tex]
substitute in the formula above
[tex]A_2=201(1+0.02*0.5)[/tex]
[tex]A_2=201(1.01)[/tex]
[tex]A_2=\$203.01[/tex]
