Answer:
A = 500(1+6%/2)^2t
Step-by-step explanation:
Given the general compound interest formula A = P(1+r/n)^nt. With an initial investment of $500, and percent interest of 6% compounded semi annually(every six months/half a year/twice in one year). A = 500(1+6%/2)^2t .
i.e if given two years of compound interest, t=2. A = 500(1+6%/2)^2(2), 500(1+0.03)^4, 500(1.03)^4, 500(1.12550881), 500(≈1.1255) = 562.75
A = 562.75$ for two years
