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