Lisa Richter deposited $5,000 at 4% compounded semiannually for three years. At the beginning of the fourth year, Lisa deposited $2,500. What would her balance be at the end of five years assuming she is still earning 4% compounded semiannually?

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Mathematics

Charlie Mccormick

1 January, 15:15

Lisa Richter deposited $5,000 at 4% compounded semiannually for three years. At the beginning of the fourth year, Lisa deposited $2,500. What would her balance be at the end of five years assuming she is still earning 4% compounded semiannually?

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Kamila Cordova · Answer 1

Formula for compound interest is P (1 + (r/n)) ^nt

P=principle (5000)

r=rate (4% or 0.04)

n = number of times compounded (semi annually 2 times)

t = time (3 years)

$8130.81 after the 2500 deposit

at the end of the fifth year $8459.29