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.)

Question

Business

Eli

8 June, 10:32

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.)

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Answers (1)

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Frederick Collier · Answer 1

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