Answer:
The amount of interest would be $ 461.61.
Step-by-step explanation:
The amount that is compounded semiannually is,
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Where, P is the principal amount,
r is the annual rate of interest,
t is the time ( in years ),
Here, P = $ 734,
r = 10 % = 0.10,
t = 5 years,
Thus, his balance after 5 years,
\(A=734(1+\frac{0.1}{2})^{10}\)
\(=\$ 1195.60865605\approx \$ 1195.61\)
Hence, the amount of interest would be,
\(I=A-P\)
\(= \$ 1195.61-\$ 734\)
\(=\$ 461.61\)
