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Calculating the Accumulated Amount

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I have attempted some of the questions within the excel sheet; however, I'm not sure if I'm on the right track. Can you please provide any assistance/formulas you can to assist?

Question 1.

Alfred has been advised that on each pay day he should pay himself first by depositing some part of his paycheck in a fund before spending any of the paychecks. He has resolved to invest $280 a month into a savings fund. To simplify calculations, consider each month as having exactly 28 days meaning that there will be 13 months per year, exactly 52 weeks per year, exactly 4 weeks per month and 364 days per year (52*7). How much will Alfred accumulate in 40 years for each of the following investment alternatives?
1. Deposit $280 once a month into a fund with an APR of 3.02% with interest compounded monthly (13 times per year)
2. Deposit $70 once a week into a fund with an APR of 2.67% with interest compounded weekly (52 times per year)
3. Deposit $70 once a week into a fund with an APR of 2.66% with interest compounded Daily (364 times per year)

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Solution Summary

Solution depicts the steps to find the accumulated amount in the given cases.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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