Assume that,to help build your nest-egg,you made two deposits of $100,one on January 1,2014,and one on July 1,2014,in a savings account that paid 10 percent compounded semiannually.On January 1,2015,the bank increased the interest rate paid on savings accounts to 12 percent,annual compounding.Then you made a third $100 deposit on April 1,2015.How much should there be in your account on January 1,2016?
A) $353.08
B) $349.95
C) $355.27
D) $362.10
E) $338.43

Question

Quizplus · Accepted Answer

The first deposit of $100 on January 1, 2014, grows with 10% semiannual compounding to $110.25 by January 1, 2015. The second deposit on July 1, 2014, grows to $105 by January 1, 2015. From January 1, 2015, both amounts grow with 12% annual compounding. The third deposit of $100 on April 1, 2015, grows for 9 months at 12% annual compounding. Adding these amounts gives $353.08.

Assume That,to Help Build Your Nest-Egg,you Made Two Deposits of $100,one