Second National Bank Computes Interest Semiannually

Multiple Choice

Second National Bank computes interest semiannually.If the annualized interest rate (APR) is currently 6 percent,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

A) 20 periods at 12 percent
B) 20 periods at 3 percent
C) 10 periods at 6 percent
D) 10 periods at 3 percent