4
answers
1
watching
229
views

It seems there is a discrepancy in the calculation. Let's break it down:

1.The initial calculation you provided, PMT ≈ 200,000 / (0.111334/0.0020769), results in approximately $3,729.91 as the bi-weekly deposit to save $200,000 in 22 years with a 5.4% interest rate compounded bi-weekly.

2.However, when you multiplied $3,729.91 by 26 to represent one year's worth of deposits, you correctly calculated that it amounts to $96,977.66 per year.

3.Then, you multiplied this yearly amount by the total number of bi-weekly periods in 22 years, which is 572, and you calculated a total of $2,133,508.52.

So, the second calculation is indeed correct. To save $200,000 in 22 years with a 5.4% interest rate compounded bi-weekly, you would need to make bi-weekly deposits of approximately $3,729.91, and the total amount deposited over the 22-year period would be approximately $2,133,508.52. 

 

but the goal is only $200,000 not 2+ million

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Already have an account? Log in
Already have an account? Log in
Already have an account? Log in

Related questions

Related Documents

Weekly leaderboard

Start filling in the gaps now
Log in