Question

You're prepared to make monthly payments of $380, beginning at the end of this month, into an account that pays 5 percent interest compounded monthly. How many payments will you have made when your account balance reaches $24,391

Answer 1

the nper is 57 months

Step-by-step explanation:

The computation of the time period is given below:

Given that

PMT is $380

RATE = 5% ÷ 12 = 0.416666%

PV = $0

FV = $24,391

The formula is shown below

=NPER(RATE,PMT,FV,PV,TYPE)

After applying the above formula, the nper is 57 months