If Joanie puts $500 in a savings account that earns 10 percent annual interest compounded semiannually, how much money will be in the account after one year?
Choose the correct choice from the following.
A) $51.25
B) $510
C) $550
D) $551.25
E) $565
Since, money is compounded semiannually, rate of interest=10/2= 
<gadget id="calculator">10/2</gadget>
<output>5</output>
5% and time=1*2= 
<gadget id="calculator">1*2</gadget>
<output>2</output>
2   C.I=(5%of $500)+5%of(5%of $500)=$51.25   Amount=$500+51.25= 
<gadget id="calculator">500+51.25</gadget>
<output>551.25</output>
$551.25   Answer $551.25
<result>D</result>
If Joanie puts $500 in a savings account that earns 10 percent annual interest compounded semiannually, how much money will be in the account after one year?