BrightFuture Bank offers a savings account with a $2,000 initial deposit and a 6% annual interest rate, compounded semiannually. They claim that the balance will double in 6 years. Is this claim true?
Answer
A
False. The balance will not reach 4 dollars comma 000 in 6 years at a 6 percent interest rate.
B
True. The balance will double to 4 dollars comma 000 in 6 years at a 6 percent interest rate.
C
True. The balance will be exactly 3 dollars comma 500 in 6 years at a 6 percent interest rate.
D
False. The balance will exceed 4 dollars comma 000 in 6 years at a 6 percent interest rate.