Solve the problem. Round to the nearest cent.Steve’s savings account has a balance of $1287. After 4 years, what will the amount of interest be at 6% compounded semiannually?

Use the compound-interest formula with principal $1,287, rate 0.06, 2 compounding periods per year, and 4 years. The interest is $1,287[(1 + 0.06/2)^(2 × 4) − 1] = $343.33 when rounded to the nearest cent. The correct choice is $343.33.

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