You want to have $31,000 saved 5 years from today in order to make a down...

You want to have $31,000 saved 5 years from today in order to make a down payment on a house. To fund this, you will make deposits each week from your paycheck into an account that will earn 5.48 percent compounded weekly. How much must you deposit each week?

Expert Solution

	Deposit in each week (P)	FVA÷([(1+r)^n-1]÷r)

	Here,

A	Interest rate per annum	5.48%
B	Number of years	5
C	Number of payments per per annum	52
A÷C	Interest rate per period ( r)	0.11%
B×C	Number of periods (n)	260
	Future value of annuity (FVA)	31,000

	Deposit in each week (P)	$ 103.70
		31000÷(((1+0.11%)^260-1)÷0.11%)

jeff jeffy answered 1 year ago

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