Verified answer

The formula for compounding interest is P=C(1+r/n)^nt

P=Final amount

C=Initial Amount

r=percentage gained as decimal

n=compounds per year

t=number of years

Semiannually means twice a year.

So to begin fill in all the given information;

P=1847(1+.06/2)^2 x 5

P=1847(1.03)^10

P=1847 x 1.3439163793441219

P=2482.2135526485931493

But you are not done, for P equals the amount after 5 years and includes the initial balance, so subtract the initial balance to find just the interest.

2482.2135526485931493-1847=635.2135526485931493

The answer is B (the third answer down, might be incorrect)

b. $635.21