Lucy bought a 1-year,10000 certificate of deposit that paid interest at an annual rate of 8 percent compunded semiannually. What was the total amount of interest paid on this certificate at maturity ? Select: A) 10464 B) 864 C) 816 D) 800 E) 480
Solution:   It says, 8 percent per annum per compounded semi annually.   Therefore r = 8/2= 
<gadget id="calculator">8/2</gadget>
<output>4</output>
4% .   So, P= 10000   r = 4   n = 2   Net Amount A = 10816, I = 800.   ANSWER:800
<result>D</result>
Lucy bought a 1-year,10000 certificate of deposit that paid interest at an annual rate of 8 percent compunded semiannually. What was the total amount of interest paid on this certificate at maturity ?