Swenson and Swenson just decided to save $2,200 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 5.5% interest compounded monthly. They deposit the first $2,200 today. If the company had wanted to deposit an equivalent lump sum today, how much would they have had to deposit?© BrainMass Inc. brainmass.com June 3, 2020, 9:15 pm ad1c9bdddf
This is a question of the present value of annuities.
Monthly payment = 2200
Number of months ...
This solution calculate the amount Swenson and Swenson will need to deposit into their savings account that pays an interest of 5.5% compounded monthly.