your grandfather started his own business 52 years ago. He opened a savings acco

Question

your grandfather started his own business 52 years ago. He opened a savings account at the end of his third month of business and contributed $x. Every three months since then, he faithfully saved another $x. His savings account had earned an average rate of 4.5 percent annually. Today, his account is valued at $364,209.11. How much did your grandfather save every 3 month? A. $425.15 B. $428.67 C. $431.09 D. $443.13 E. $462.25 are my choices.

Explanation / Answer

as 4.5% annualy for 3 months interest rate= 4.5%/4 =1.125% => Fv = PV*(1+r)^n => 364209.11 = (x/(1.0125) +x/(1.0125)^2+-----+x/(1.0125)^208)*(1.0125)^208 n=208 (as for 1 year there he is saving 4 times so 52*4 =208) => solving for x =$443.13 ans:D

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.