Today you opened up a local bank account. Your plan is to make five $4,000 contributions to this account. The first $4,000 contribution will occur today and then every six months you will contribute another $4,000 to the account. (So your final $4,000 contribution will be made two years from today). The bank account pays a 6% APR that is compounded monthly. After two years, you plan to leave the money in the account earning interest, but you will not make any further contributions to the account. 

How much will you have in the account 6 years from today?

Answer rating: 100% (QA)

To calculate the amount you will have in the account 6 years from today considering the contributions and the interest earned we can break down the calculation into two parts 1 Calculation of the future value of the contributions You will make five contributions of 4000 each with the first contribution ... View the full answer