Jim Moore opened a new savings account. He deposited $12,000 at 12 percent compounded semiannually. At the start of the fourth year, Jim deposits an additional $50,000 that is also compounded semiannually at 12 percent. At the end of 6 years, the balance in Jim Moore's account is: (Use the tables in the handbook)

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Ismael

Mathematics

16 January, 13:38

Jim Moore opened a new savings account. He deposited $12,000 at 12 percent compounded semiannually. At the start of the fourth year, Jim deposits an additional $50,000 that is also compounded semiannually at 12 percent. At the end of 6 years, the balance in Jim Moore's account is: (Use the tables in the handbook)

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Madden Rasmussen · Answer 1

It is 12000 x (1.06) ^12 + 50000 x (1.06) ^6 = 95,072.31

start of 4th year to end of 6th year = 6 semi-annual periods where interest is compounded for the second deposit