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A friend of yours contacts you about an illegal payoff scheme to judges she is aware of at the prison she works at. Your friend has consulted with an attorney and believes she could be eligible for a $10 million whistleblower pay out. Although this is a good start, your friend believes she would need $20 million to retire comfortably, with the lifestyle she desires. She wonders aloud how many years it would take to double her money to $20 million, assuming a 6% rate. Calculate this for her using an Excel function, not with the rule of 72. (round to the nearest year)

Question

A friend of yours contacts you about an illegal payoff scheme to judges she is aware of at the prison she works at. Your friend has consulted with an attorney and believes she could be eligible for a $10 million whistleblower pay out. Although this is a good start, your friend believes she would need $20 million to retire comfortably, with the lifestyle she desires. She wonders aloud how many years it would take to double her money to $20 million, assuming a 6% rate. Calculate this for her using an Excel function, not with the rule of 72. (round to the nearest year)

check_circleAnswer
Step 1

Calculate the maturity period to double the money as follows:

MS...

=NPER (6% ,, -10000000,20000000)
Function Arguments
?
X
NPER
=0.06
Rate 6%
= number
Pmt
-10000000
= -10000000
Pv
Fv 20000000
20000000
Турe |
=number
11.89566105
Returns the number of periods for an investment based on periodic, constant payments and a constant
interest rate.
Type is a logical value: payment at the beginning of the period 1;
payment at the end of the period 0 or omitted.
=
Formula result 12
Cancel
OK
Help on this function
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=NPER (6% ,, -10000000,20000000) Function Arguments ? X NPER =0.06 Rate 6% = number Pmt -10000000 = -10000000 Pv Fv 20000000 20000000 Турe | =number 11.89566105 Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate. Type is a logical value: payment at the beginning of the period 1; payment at the end of the period 0 or omitted. = Formula result 12 Cancel OK Help on this function

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