Question

Juan has a goal of saving up $59377 by making biweekly (26 per year) deposits into...

Juan has a goal of saving up $59377 by making biweekly (26 per year) deposits into a savings account for the next 7 years. If the account has an annual interest rate of 0.7%, how much should each of his deposits be? Round your answer to the nearest dollar.

Homework Answers

Answer #1

Answer :-

Future value = $59377

Time ( n ) = 7 years * 26 biweekly per year

= 182

Time ( n ) = 182

Annual interest rate ( r ) =  0.7% / 26  biweekly

= 0.7 / 2600

Annual interest rate ( r ) = 0.0002692

Here we need to find out the each deposit ( R ).

This is the formula for finding the Each deposit .

Each deposit ( R ) = $318 .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Juan has a goal of saving up $56282 by making biweekly (26 per year) deposits into...
Juan has a goal of saving up $56282 by making biweekly (26 per year) deposits into a savings account for the next 7 years. If the account has an annual interest rate of 1.3%, how much should each of his deposits be?
Mirza is saving for his retirement by making deposits of $2,100 on each birthday into a...
Mirza is saving for his retirement by making deposits of $2,100 on each birthday into a savings account starting on his 57th birthday and ending on his 65th birthday (inclusive). Given an effective annual rate of interest of 4.4%, how much will he accumulate by his 65th birthd ay?
Martha starts saving for her retirement by making monthly deposits into a retirement account whose annual...
Martha starts saving for her retirement by making monthly deposits into a retirement account whose annual rate is 3.3%. She plans to retire in 26 years with an amount of money that has the same buying power as $259,709 has today. If the anticipated rate of inflation if 2.4%, how much should each of her deposits be?
Jennifer Creek is saving up for a new car. She wants to finance no more than...
Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000 estimated price in two years. She deposits $4000 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 5% per year with monthly compounding, how much must she deposit each month?
Michael Ross is saving up for a new car. She wants to finance no more than...
Michael Ross is saving up for a new car. She wants to finance no more than $12,000 of the $23,000 estimated price in two years. He deposits $3,500 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 4.5% per year with monthly compounding, how much must she deposit each month?
Mitch and Bill are both age 75. When Mitch was 24 years​ old, he began depositing...
Mitch and Bill are both age 75. When Mitch was 24 years​ old, he began depositing ​$1300 per year into a savings account. He made deposits for the first 10​ years, at which point he was forced to stop making deposits.​ However, he left his money in the​ account, where it continued to earn interest for the next 41 years. Bill​ didn't start saving until he was 47 years​ old, but for the next 28 years he made annual deposits...
I’m considering setting up a forty year annuity with $50 biweekly payments accruing 6% interest. Alternatively,...
I’m considering setting up a forty year annuity with $50 biweekly payments accruing 6% interest. Alternatively, I could deposit a single lump sum into a compound interest savings account with the same interest rate and compounding period. If I want the same future value in forty years, how much should that lump sum be?
Damarius is making some big life decisions! He decides it's time to start saving for his...
Damarius is making some big life decisions! He decides it's time to start saving for his future and deposits $300 each month at 4.1% annual interest, compounded monthly, for 30 years. At the end of 30 years, he has an account balance of  $211,966.64. How much of this did Damarius contribute and how much of this is interest?
At age 35, Frugal Frannie started saving $7,000 per year for retirement, with annual deposits being...
At age 35, Frugal Frannie started saving $7,000 per year for retirement, with annual deposits being made at the end of each year. Frannie invests her funds in a mutual fund that earns 7.5% per year. She plans to retire in 30 years, at age 65. How much will Frannie have in her retirement account when she retires? Round answer to nearest dollar and do not use a dollar sign Frannie assumes she will live to be 90 years old,...
Mustafa is saving to buy a house. His goal is $700000. The interest rate is 6%...
Mustafa is saving to buy a house. His goal is $700000. The interest rate is 6% compounded annually, and his plan is to make deposits of $P at the end of every month for 5 years. a) What is the effective monthly rate? b) What is $P? After 2 years, the interest rate changes to 8%. c) How much money has he saved so far? d) If he keeps on making the same monthly deposit, how much money will he...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT