A new savings account offers 6 percent annual interest compounded every 6 months. What would be the total balance in an account after 1 year, if the initial amount in the account were $6000? Choose the correct option:  A) $80.00  B) $84.40  C) $360.00  D) $6,360.00  E) $6,365.40
Solution -   At the end of the first 6 months, the interest earned is (1/2)*6000*(6/100)= 
<gadget id="calculator">(1/2)*6000*(6/100)</gadget>
<output>180</output>
180. (6 months is 1/2 in the equation since 6% is a yearly rate, not for six months).   Since the interest is compounded, the second six months of the year is getting interest on original and first six months interest i.e.,6180.   The interest earned during the final 6 months of the year is   (1/2)*6180*(6/100)= 
<gadget id="calculator">  (1/2)*6180*(6/100)</gadget>
<output>927/5 = around 185.4</output>
185.4   The total balance at the end of the year is   6000+180+185.4= 
<gadget id="calculator">  6000+180+185.4</gadget>
<output>6_365.4</output>
6365.4   Answer: $6,365.40
<result>E</result>
A new savings account offers 6 percent annual interest compounded every 6 months. What would be the total balance in an account after 1 year, if the initial amount in the account were $6000?