Lisa Richter made a one time deposit of $5,000 at 4% compounded semiannually for 5 years....

Lisa Richter made a one time deposit of $5,000 at 4% compounded semiannually for 5 years. What would her balance be at the end of five years assuming she is still earning 4% compounded semiannually?

Expert Solution

FV = PV(1 + r)^t

where, r = 0.04 / 2 = 0.02

t = 5 * 2 = 10

FV = $5,000(1 + 0.02)^10

FV = $6,094.97

jeff jeffy answered 2 years ago

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