Explore BrainMass

Explore BrainMass

    Calculating the Accumulated Amount

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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)

    © BrainMass Inc. brainmass.com October 10, 2019, 7:18 am ad1c9bdddf

    Solution Summary

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