Answer:
$253
Explanation:
In order to solve this you just have to use the formula to calculate the future insterests:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
A= Amount or future value
P=Principal
R=Interest rate in decimals
N= Number of compounds by unit, or year
T= Time in years
So we know that the interest is 8% that is 0.08 in decimal, and since it is compounded semiannually that´s two times a year for three years, we just insert that into the formula:
[tex]A=P(1+\frac{r}{n})^{nt}\\A=200(1+\frac{.08}{2})^{2*3}\\ A=200(1.04)^6\\a=200(1.2653)\\A=253.06[/tex]
So the future value of the $200 account will be $253.06 after three years.
