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?
A)$5,131
B)$8,131
C)$8,800
D)$8,800.99
E)None of these

Question

Quizplus · Accepted Answer

Lisa's initial deposit grows for five years, and the additional deposit grows for two years. Calculating both and summing gives the final balance.

Lisa Richter Deposited $5,000 at 4% Compounded Semiannually for Three