Solve the problem. Round to the nearest cent.Jason’s savings account has a balance of $1847. After 5 years, what will the amount of interest be at 6% compounded semiannually?

With semiannual compounding, the 6% annual rate is divided into 2 periods per year, so the rate per period is 3%. There are 5 × 2 = 10 periods, giving interest of $1,847[(1.03)^10 − 1] = $635.21, rounded to the nearest cent. The correct choice is $635.21.

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