Question
In: Finance
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).
Solutions
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 agoRelated Solutions
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