Find and compare the future value after two years of a attracting interest at a rate of 10% compounded a) annually and b) semi annually. deposit of $100

a) $121.00  

b) $121.55

Step-by-step explanation:

We use the formula of Future Value

a) Future value of a deposit of $100 with an interest rate of 10% compounded annually

PV=100

i=10%

n= 2 years

b) Future value of a deposit of $100 with an interest rate of 10% compounded semiannually

PV=100

i=10%/2=5% (When compounding semiannually, the rate is divided by the number of semesters in a year, in this case 2)

n= 4 semesters

the answer would be 484

step-by-step explanation:

just multiply 0.484 times 1,000 (formula)