Question
You are planning to go to Europe in June 2022, to recover from the COVID lockdowns. You expect that the trip will cost about $4,000
You are planning to go to Europe in June 2022, to recover from the COVID lockdowns. You expect that the trip will cost about $4,000 in total. You want to start putting money aside to safe up for the trip. Therefore, you decide to get a high-interest savings account and make weekly contributions to that account so that you reach your $4,000 savings goal by the time your trip begins (say, the end of May). The interest rate on your savings account is 0.3% per annum. How much money will have to put in your savings account each week to reach your savings goal on time? (Assume weekly compounding for simplicity.)
A. 100.03 B. 99.89 C. 100.00 D. 99.75
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started