John already has $50,429 in his savings account. He plans to make contributions of $1,658.65 at...

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John already has $50,429 in his savings account. He plans to make contributions of $1,658.65 at the end of every six months, until he reaches $73,400. The interest rate is 2.13% compounded quarterly. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = N = He will reach his goal in A year(s) and A month(s). b) After John reaches $73,400, he wants to withdraw $600 at the start of each month. For how many years and months can he make the withdrawals? Round up to the next month. P/Y = A N = A He will withdraw for A A/ year(s) and A/ month(s). John already has $50,429 in his savings account. He plans to make contributions of $1,658.65 at the end of every six months, until he reaches $73,400. The interest rate is 2.13% compounded quarterly. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = N = He will reach his goal in A year(s) and A month(s). b) After John reaches $73,400, he wants to withdraw $600 at the start of each month. For how many years and months can he make the withdrawals? Round up to the next month. P/Y = A N = A He will withdraw for A A/ year(s) and A/ month(s).

Answer rating: 100% (QA)

SOLUTION a To calculate the time it will take for John to reach his savings goal we can use the compound interest formula A P1 rnnt Where A Final amount goal P Principal amount initial savings r Annua... View the full answer