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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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  1. 8 June, 13:14
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    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
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