david deposited $ 5000 to open a new savings account that earned 6 percent annual interest , compounded semi - annually . if there were no other transactions in the account , what the amount of money in david account one year after the account was opened ?  Choose the correct choice from the following choices:
A) $ 5306
B) $ 6120
C) $ 5136
D) $ 5405
E) $ 5500

Rationale: approach # 1 : 6 percent annual interest compounded semi - annually - - > 3 % in 6 moths . for the first 6 moths interest was 3 % of $ 5000 , so $ 150 ; for the next 6 moths interest was 3 % of $ 5000 , plus 3 % earned on previous interest of $ 150 , so $ 150 + $ 6 = $ 156 ; total interest for one year was $ 150 + $ 156 = $ 306 , hence balance after one year was $ 5000 + $ 306 = $ 5306 . answer : a .
Answer: A