Michelle deposited a certain sum of money in a savings account on July 1st, 2007. She earns an 6.4% interest compounded semiannually. The sum of money in the account on December 31st, 2009 is approximately what percent of the initial deposit?
Choose one.
A) 117%	B) 120%	C) 121%	D) 135%	E) 140%
Since Michelle earns 6.4% interest compounded semiannually, then she earns 3.2% interest every 6 months.   Now, the simple interest earned in 5 periods (30 months = 5*6 months) would be 3.2%*5=16%. But, since the interest iscompoundedevery 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 16%, only answer choice A fits.   117%nswer: 117% 3.2 *5= 
<gadget id="calculator"> 3.2 *5</gadget>
<output>16</output>
16%. But, since the interest iscompoundedevery 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 16%, only answer choice A fits.   117%nswer: 117%
<result>A</result>
Michelle deposited a certain sum of money in a savings account on July 1st, 2007. She earns an 6.4% interest compounded semiannually. The sum of money in the account on December 31st, 2009 is approximately what percent of the initial deposit?