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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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  1. 22 September, 08:03
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    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)
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