Deposit an equivalent lump sum today


Problem:

Swenson and Swenson just 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 a separate savings account which pays 5.5% interest compounded monthly. They deposit the first $2,200 today. If the company had wanted to deposit an equivalent lump sum today, how much would they have had to deposit?

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Finance Basics: Deposit an equivalent lump sum today
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