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How long will it take to save ​$14,500 by making deposits of ​$90 at the end...

How long will it take to save ​$14,500 by making deposits of ​$90 at the end of every month into an account earning interest at 5.3​% compounded semi-annually​? State your answer in years and months​ (from 0 to 11​ months).

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Expert Solution

Interest rate of 5.3% compounded semi annually is equivalent to 5.242409% compounded monthly or monthly rate of 0.436867% as follows:

Number of months required to save $14,500 is 122.25 as follows:

Therefore, time required to save $14,500= 10 years and 2.25 months.

jeff jeffy answered 1 year ago
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