Lee holmes deposited $15,300 in a new savings account at 8% interest compounded semiannually. at the beginning of year 4, lee deposits an additional $40,300 at 8% interest compounded semiannually. at the end of 6 years, what is the balance in lee’s account? (use the table provided.) (do not round intermediate calculations. round your answer to the nearest cent.) balance $

At the end of 6 years, the balance in Lee's account is $88,976

Step-by-step explanation:

I am going to call B1 the balance for the first deposit and B2 the balance for the second deposit. The balance is Lee's account at the end of 6 years is B = B1 + B2.

The compound interest formula is given by:

A: Amount of money(Balance)

P: Principal(Initial deposit)

r: interest rate(as a decimal value)

n: number of times that interest is compounded per unit t

t: time the money is invested or borrowed for.

First step: Balance B1

A = Amount of money(Balance) = B1(value we have to find)

P = $15,300

r = 0.08

n = 2(semiannually means twice a year)

t = 6

So, from the first balance, Lee has $24,496

Next step: Balance B2

A = B2

P = $40,300

r = 0.08

n = 2

t = 3(from the beginning of year 4 to the end of year 6, so 3 years).

From the second balance, Lee has $64,480

Final step: Sum of the balances

B = B1 + B2 = 24,496 +  64,480 = $88,976

At the end of 6 years, the balance in Lee's account is $88,976

answer: 1 and 3

step-by-step explanation: