Question

I now have $23,000 in the bank earning interest of .50% per month. I need $33,000 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 $33,000?

Answer 1

41.92 months

Step-by-step explanation:

In this question, we use the NPER formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $23,000

Future value = $33,000

Rate of interest = 0.50%

PMT = $100

The formula is shown below:

= NPER(Rate;-PMT;-PV;FV;type)

The present value and the PMT comes in negative

So, after solving this, the answer would be 41.92 months