Describe and correct the error a student made in writing an equation to find the annual value of an investment of $1,000 at 4% annual interest compounded semiannually. Choose the correct answer below.
A.
The original equation should be
because the interest is compounded 6 times per year.
B.
The original equation should be
because the interest is compounded 4 times per year.
C.
The original equation should be because the interest is compounded 2 times per year.
D.
The original equation should be
because the interest is compounded 2 times per year.