select the correct answer. calculate the compound amount. round to the nearest cent for, p = $1200, r = 7%…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $A$ is the compound amount, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times interest is compounded per year, and $t$ is the number of years.

Step2: Convert values to appropriate form

Given $P = 1200$, $r=0.07$ (since $7%=0.07$), $n = 2$ (compounded semiannually), and $t = 12$.

Step3: Substitute values into the formula

$A=1200(1 +\frac{0.07}{2})^{2\times12}=1200(1 + 0.035)^{24}$.

Step4: Calculate the value inside the parentheses

$1+0.035 = 1.035$.

Step5: Calculate the exponent

$(1.035)^{24}\approx2.283327$.

Step6: Calculate the compound amount

$A = 1200\times2.283327=2740.0044\approx2740.00$.

Answer:

C. $2740.00$