what is the future value of $5,000 in a bank account for 7 years at 4 percent compounded bimonthly

Answer 1

V = Vo(1+r)^n.

Vo = $5000 = Present value.

r = ((4% / 12)*2)/100% = 0.0066667 = Bi-monthly
rate expressed as a decimal.

n = 6Comp./yr * 7yrs = 42 Compounding
periods.

Plug the above values into the given Eq.

Answer: $6609.50.