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Best Bank pays 6% interest rate compounded semi-annually. However, your deposit will be annually. Your first deposit of $8,000 will be made immediately (Year 0).
Best Bank pays 6% interest rate compounded semi-annually. However, your deposit will be annually. Your first deposit of $8,000 will be made immediately (Year 0). Additionally, you will make the following deposit end of each year for 5 years.
Years 1 & 2: $7,000 each year
Years 3 & 4: $6,000 each year
Years 5: $5,000
How much will be in the account at the end of five years?
A. $45,981.86
B. $46,194.01
C. $46,095.54
D. $52,190.80
E. $46,154.20
F. $42,347.24
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