I now have $16,000 in the bank earning interest of 1.00% per month. I need $26,000 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 $26,000? (Do not round intermediate calculations. (Round your answer to 2 decimal places.)

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Asked Mar 25, 2019
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I now have $16,000 in the bank earning interest of 1.00% per month. I need $26,000 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 $26,000? (Do not round intermediate calculations. (Round your answer to 2 decimal places.)

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Expert Answer

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Step 1

Calculation of Duration of the Investment:

The Duration of the Investment can be calculated using a excel function =NPER, which denotes the number of periods of any investment. The excel spreadsheet with excel function is shown below:

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Step 2

The excel spreadsheet workings are shown below:

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