Question

You're prepared to make monthly payments of $310, beginning at the end of this month, into an account that pays 4 percent interest compounded monthly. How many payments will you have made when your account balance reaches $20,175

Answer 1

59 Payments

Step-by-step explanation:

Future value = $20,175

Monthly payment= $310

Interest rate= 4%/12 = 0.3333% per month

How many payments will you have made when your account balance reaches $20,175?

Now we use Ms Excel to calculate the number of payment

Number of payment = N(FV, -PMT, I/Y)

Number of payment = N(20,175 , -310 , 0.3333%)

Number of payment = 58.9989

Number of payment = 59.