It is now January 1. You want to start saving by making regular deposits of $600...

It is now January 1. You want to start saving by making regular deposits of $600 each, once every 6 months, in the bank. The first payment will be made today. The bank pays an APR of 9% with semiannual compounding. How much will be in your bank account after 13 years?

Expert Solution

The periodicals savings amounts to an annuity due of 26 semi annual payments (13 years*2).

Amount available in 13 years = $29,826.79 Calculated as Future Value of the annuity as follows:

jeff jeffy answered 1 year ago

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