Question

I now have $20,000 in the bank earning interest of .5% per month. I need $30,000 to make a down payment on a house. I can save an additional $100 per month. How long will it take me to accumulate the $30,000? (Do not round intermediate calculations. Round your answer to 2 decimal places. Use a financial calculator or Excel.)

Answer 1

Answer:

n= 44.74 months

Explanation:

Giving the following information:

Invest= $20,000

i= 0.5 a month

FV= $30,000

I can save an additional $100 per month.

How long will it take me to accumulate the $30,000

First, we are going to explain it on a financial calculator.

We have to use the function CMPD

There we have the following information required:

Set: End

n=?

I%= 0.50

PV(present value)= $20000

PMT (monthly cuota)= $100

FV (final value)= -300000 (it has to be in negative)

Now we pulse "solve" in "n" and the number of months required will we resolved.

n= 44.74 months