Question

If you want to say 30,000 to buy home in five years how much will you need to set aside per paycheck if you get paid monthly assuming no interest accrual

Answer 1

$500

Step-by-step explanation:

Accrued interest is the accumulated interest earned on savings. In a savings plan, interest earned increases the balance of the account. At the end of a period, the balance will be the amount saved plus the accrued interest. If an account is not earning interest, only the amount saved will reflect on the account.

If $30,000 is the amount required, it will be divided by the number of months in saving duration. The saving duration is 5 years, every month, a total of 60 months

every month, you will set aside $30,000 divide by 60 months

=$30,000/60

=$500