Answer:
The amount of interest would be $ 461.61.
Step-by-step explanation:
The amount that is compounded semiannually is,
[tex]A=P(1+\frac{r}{2})^{2t}[/tex]
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,
[tex]A=734(1+\frac{0.1}{2})^{10}[/tex]
[tex]=\$ 1195.60865605\approx \$ 1195.61[/tex]
Hence, the amount of interest would be,
[tex]I=A-P[/tex]
[tex]= \$ 1195.61-\$ 734[/tex]
[tex]=\$ 461.61[/tex]
