Answer:
A
Step-by-step explanation:
The formula for this type of interest is [tex]A=P(1+\frac{r}{n})^{nt}[/tex], where A is the total amount, P is the initial investment, x is the interest rate, n is the amount of times that the investment is compounded a year, and t is the amount of years. Plugging in the numbers given, you get:
[tex]A=1800(1+\frac{0.025}{2})^{2\cdot 12}=[/tex]
[tex]1800(1.0125)^{24}\approx 2425.23[/tex]
Now, she invests this into a new account, and you can set up the following equation:
[tex]A=2425.23(1+\frac{0.04}{12})^{12\cdot 7}=[/tex]
[tex]2425.23(1.0033333)^{84}\approx 3207.40[/tex], or option A.
Hope this helps!
