Michelle deposited a certain sum of money in a savings account on July 1st, 2007. She earns an 10% interest compounded semiannually. The sum of money in the account on December 31st, 2009 is approximately what percent of the initial deposit? Pick one
A) 127%  B) 120%  C) 121%  D) 135%  E) 140%
Since Michelle earns 10% interest compounded semiannually, then she earns 5% interest every 6 months.   Now, the simple interest earned in 5 periods (30 months = 5*6 months) would be 5%*5=25%. But, since the interest is compounded every 6 months, then there would be interest earned on interest (very small amount) thus the actual interest earned would be a little bit more than 25%, only answer choice A fits.   127%nswer: 127% 5 *5= 
<gadget id="calculator"> 5 *5</gadget>
<output>25</output>
25%. But, since the interest is compounded every 6 months, then there would be interest earned on interest (very small amount) thus the actual interest earned would be a little bit more than 25%, only answer choice A fits.   127%nswer: 127%
<result>A</result>
Michelle deposited a certain sum of money in a savings account on July 1st, 2007. She earns an 10% interest compounded semiannually. The sum of money in the account on December 31st, 2009 is approximately what percent of the initial deposit?