Solve the problem. Round to the nearest cent.Jason’s savings account has a balance of $734. After 5 years, what will the amount of interest be at 10% compounded semiannually?

With semiannual compounding, the account earns 10% ÷ 2 = 5% per period, over 5 × 2 = 10 periods. The interest is $734[(1.05)^10 − 1] = $461.61 when rounded to the nearest cent. Therefore, the correct choice is $461.61.

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