Jim 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, what is the balance in Jim's account?

Question

anonymous · Answer

12,000(1+.12)+50,000(1+.12)^12=208,238.80   ? thats probably not even the right formula...

dumbcow · Answer

B = P(1+r/n)^nt ,  Formula for compound interest

P = 12,000 and 50,000
r = 0.12
n=2
t = 6 and 3

Total = 12,000(1.06)^12 + 50,000(1.06)^6

anonymous · Answer

oh. yea i was way off.           B=95,072.31

anonymous · Answer

thank you, the formula was a lot of help.