If an investor puts $1000 in a savings account that earns 10 percent annual interest compounded semiannually, how much money will be in the account after one year?  Choose the correct choice from the following answers
A) $ 1100.25  B) $ 1100.75  C) $ 1101.25  D) $ 1101.75  E) $ 1102.50

Rationale: "1.05 * 1.05 * 1000 = $ 1102.50 the answer is e ."
Answer: E