Your grandfather started his own business 52 years ago. He opened an investment account at the end of his third month of business and contributed $x. Every three months since then, he faithfully saved another $x. His savings account has earned an average rate of 5.73 percent annually. Today, his account is valued at $289,209.11. How much did your grandfather save every three months assuming he saved the same amount each time?

Question

Juan Rose

Business

22 September, 07:47

Your grandfather started his own business 52 years ago. He opened an investment account at the end of his third month of business and contributed $x. Every three months since then, he faithfully saved another $x. His savings account has earned an average rate of 5.73 percent annually. Today, his account is valued at $289,209.11. How much did your grandfather save every three months assuming he saved the same amount each time?

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Answers (1)

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Master · Answer 1

Solution:

Given,

Grandfather started his own business 52 years ago

Average rate = 5.73

His account is valued at $289,209.11

Now, Calculate How much did your grandfather save every three months assuming he saved the same amount each time

N = 52 * 4 = 208

I = 5.73/4 = 1.43

PV = 0

FV = $289,209.11

CPT PMT = $-443.13 (Using excel)