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Gary decides to set up a retirement fund by depositing $154 at the end of each...

Gary decides to set up a retirement fund by depositing $154 at the end of each week for 11 years. How much will he have after 11 years, if the interest rate is 2.46%, compounded semiannually? (Please use formula and show ALL Step-by-Step NOT excel) (Can it be solved using a financial calculator)

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Expert Solution

A/c balance after 11 years P×[(1+r)^n-1]÷r
Here,
A Interest rate per annum 2.46%
B Number of years                                                            11
C Number of payments per per annum                                                               2
A÷C Interest rate per period ( r) 1.23%
B×C Number of periods (n) 22
Payment per period (P) $                                                   4,004 =154*26
A/c balance after 11 years $                                        100,454.45
4004×((1+1.23%)^22-1)÷1.23%

jeff jeffy answered 1 year ago
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