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Math Help - Need help on Compound Interest and Present Value

  1. #1
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    Need help on Compound Interest and Present Value

    Shelly Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the beginning of year 4, Shelley deposits an additional $80,000 at 5% interest compounded semiannually. At the end of 6 years, what is the balance in Shelley's account?
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  2. #2
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    Re: Need help on Compound Interest and Present Value

    Could you tell us what you've tried so far, or just where your difficulty is? I could do the problem, but I'm not sure that would help you.

    Here's a thought. Start at "time zero" (you can think of "time zero" as a date on the calendar, maybe January 1, 2000 if that seems to help) with $30K. The interest is compounded semiannually. What happens after six months (half a year)?
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