mullenp33Lv1

20 Oct 2023

PMT ≈ 200,000 / (0.111334/0.0020769) ≈ 200,000 / 53.657 ≈ $3,729.91

So, Noah and his wife should deposit approximately $3,729.91 bi-weekly into the account to save $200,000 in 22 years with a 5.4% interest rate compounded bi-weekly.

 

How is this answer correct?

$3729.91 x 26 (1 year) = 96,977.66

26 (per year) x 22(years to save)  = 572 total bi-weekly periods for 22 years

3729.91 x 572 = 2,133,508.52

 

please clarify