Question

An engineer deposited her annual bonus of $10,000 into an account that pays interest at 8% per year, compounded semiannually. If she withdrew $1000 in months 2, 11, and 23. (See the table below) and made deposits of $500 in months 5 through 8 and another single deposit of $600 in month 20, what was the total value of the account at the end of 2 years? Assume no interperiod compounding. You must draw the cash flow diagram. End of Month Amount of Deposit, S/ Month 10.000 Amount of Withdrawal, S/Month 1,000 500 1,000 20 600 IOK 23 1,000

help please

Answer 1

8% for 1 year compounded semi- annually = 4% for 6 months

of Month	Deposit	Withdraw
0	=10000*1.04*1.04*1.04*1.04
2		=1000*1.026*1.04*1.04*1.04
5	=500*1.0066*1.04*1.04*1.04
6	=500*1.04*1.04*1.04
7	=500*1.033*1.04*1.04
8	=500*1.026*1.04*1.04
11		=1000*1.0066*1.04*1.04
20	=600*1.026
23		=1000*1.006	total value
	$14556.26885	$3248.849024	$11307.41983