Question 3 • Advanced Financial Algebra
For semi-annual compounding, use n = 2: $2,000(1 + 0.04/2)^(2×3) = $2,000(1.02)^6 ≈ $2,252.32, not $2,254.43. For quarterly compounding, $2,000(1 + 0.04/4)^(4×3) ≈ $2,253.65, which matches the table. Therefore, the semi-annual compounding amount is incorrect.
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