John plans to save money for a down payment of $38,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.50% compounded monthly. How long will it take John to save the planned amount? Express the answers in years and months, rounded to the next payment period.
John plans to save money for a down payment of $38,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.50% compounded monthly. How long will it take John to save the planned amount? Express the answers in years and months, rounded to the next payment period.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 14PROB
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John plans to save money for a down payment of $38,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.50% compounded monthly. How long will it take John to save the planned amount?
Express the answers in years and months, rounded to the next payment period.
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