Finance

[jaybabeo2]

Swenson & Swenson jus decided to save $2,200 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in separate saving account which pays 5.5 percent interest compounded monthly. They deposit the first $2, 00 today. If the company had wanted to deposit an equivalent lump sum today, how much would they have had to deposit?
a. 130,297.18
b.134, 656.34
c.135, 273.51
d.137, 778.92
e.138, 001.14

[Oneeyedvic]

a.152087.19

[factor-fiction]

I get $135,770 based on a monthly rate of 0.447% which is compounded. The drip feed method has a value of $187,203 after 6 years. Investing a lump sum of $135,770 at 5.5% pa gives the same result