A depositor opens in your savings account with $5000 at 5% compounded semiannually at the beginning of 5 years an additional $5000 is deposit at the end of 6 years. What is the balance in the account?
A depositor opens in your savings account with $5000 at 5% compounded semiannually at the beginning of 5 years an additional $5000 is deposit at the end of 6 years. What is the balance in the account?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
A depositor opens in your savings account with $5000 at 5% compounded semiannually at the beginning of 5 years an additional $5000 is deposit at the end of 6 years. What is the balance in the account?
Expert Solution
Given Information:
Initial Balance in account is $5000
Interest rate is 5% Compounded semi-annually
Amount deposited at the begining of 5th year is $5000
To Find:
- Balance in Account at the end of 6th year
Step by step
Solved in 2 steps
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