Cathy May deposits $\$ 25,000$ at the end of each year for 12 years in an account paying $4 \%$ compounded annually. She then puts the total amount on deposit in another account paying $5 \%$ compounded semiannually for another 9 years. Find the final amount on deposit after the entire 21 - year period. Round your answer to the nearest cent.
A) $\$ 585,878.21$
B) $\$ 904,034.81$
C) $\$ 536,513.76$
D) $\$ 469,129.30$

Question

Quizplus · Accepted Answer

The final amount is calculated in two stages: First, using the future value of an annuity formula for the initial 12 years at 4% compounded annually, and then applying the future value of a lump sum formula for the next 9 years at 5% compounded semiannually.

Cathy May Deposits $25,000\$ 25,000$25,000 At the End of Each Year for 12 Years in Year

Cathy May Deposits $\$ 25,000$ At the End of Each Year for 12 Years in Year