Respuesta :

this answer assumes monthly compounding interest
value =2000
length=6 months
average interest per year=4.25%

Average interest rate over 6 months=(1+(APR))^(6 months/12)-1
=(1+(0.0425))^(6/12)-1
=(1.0425)^(1/2)-1
~0.0201

this is lower than 0.0425*(1/2)=0.02125 due to the compounding interest, increasing the relative share of the later months

interest=2000*average interest rate=42.06

D) 42.06
Parrain

If you invested 2,000 for 6 months, the amount you would earn in interest is A. 42.50

The 4.25% is what you would earn on your investment if you invested for a year. As you invested for only 6 months, you will make half of that:

= 4.25%/2

= 2.125%

The amount you earn as interest is:

= Amount invested x Interest

= 2,000 x 2.125%

= $42.50

In conclusion, the interest you earn is A. 42.50

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