A couple would like to accumulate $20,000 in 3 months as a down payment for a house, by making deposits at the beginning of each week in an account paying interest at 4.2% compounded monthly. Determine the size of the weekly deposit.
I tried solving this using the formula for GAD, and my answer was $1,532.26. However, my prof said that the correct answer is $1,529.80. Im thinking it might be because it's in the case of months and weeks in getting the equivalent rate that made me arrive into the wrong answer. Could you please share your thoughts about this?
I tried solving this using the formula for GAD, and my answer was $1,532.26. However, my prof said that the correct answer is $1,529.80. Im thinking it might be because it's in the case of months and weeks in getting the equivalent rate that made me arrive into the wrong answer. Could you please share your thoughts about this?