Merle Fonda Opened a New Savings Account

Multiple Choice

Merle Fonda opened a new savings account. She deposited $40,000 at 10% compounded semiannually. At the start of the fourth year, Merle deposits an additional $20,000 that is also compounded semiannually at 10%. At the end of six years, the balance in Merle's account is (use the tables in the handbook) :

A) $73,604.00
B) $53,604.00
C) $80,406.00
D) $98,636.72
E) None of these