(SOLVED) How many monthly payments of $292 will it to save up $4614 when interest is 2.39% compounded semiannually?

Discipline: Finance

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 1-2)

Paper Format: APA

Pages: 1 Words: 91

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Question

How many monthly payments of $292 will it to save up $4614 when interest is 2.39% compounded semiannually?

Expert Solution Preview

First, let's calculate the effective monthly rate.

Interest rate = 2.39% compounded semi-annually

Interest rate = 0.0239

S = Number of semi-annual periods per yea RATE = 2

Q = Number of months in a semi-annual period = 6

The effective monthly rate is given by: