Answer:
$1,194.05
Explanation:
The applicable formula is A = P x ( 1+ r) ^ n
Where A is the future amount
P is principal amount $1000
r is 6% per year or 0.06
n= time in years; 3 years
Since interest is compounded semi-annually, r will be 0.06 /2 = 0.03
n will be 3 years /2 = 6 periods
A = $1000 x ( 1 + 0.03) ^ 6
A = $1000 x 1.194052
A=$1,194.05
