Bob deposited $25k in a savings account @ 10% interest compounded semiannually. At the beginning of year 4 he deposited another $40k @10% compounded semiannually. At the end of 6yrs, what is the balance in his account? I have worked it out several ways, but now I am unsure of which way to go....
25000x1.7716 (per table in my book)=44290-25000=$19290 interest for 4yrs off $25000
40000x1.4641=58564-40000=18564 interest for 2 yrs off $40000
I also worked it out this way.......
4yrsx2=8 periods; 5%
25000x2.1436(book table)=53590-25000=$28590 interest for 4 yrs off $25000
40000x1.4641=5864-40000=18564 interest for 2yrs off $40000