oblem Set for Savings Account GoalsATH 113: Section 9.4bPage 2 of 23.Rachel still wants that new camera that costs $3800 for her photography business. Hersavings account earns .89% compounded monthlya. Rachel wants to know how long it will take her to save for the camera if shemakes monthly deposits of $75.b. How much will she pay in the long run for the camera if she makes monthlydeposits of $75?

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Asked Nov 25, 2019
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oblem Set for Savings Account Goals
ATH 113: Section 9.4b
Page 2 of 2
3.
Rachel still wants that new camera that costs $3800 for her photography business. Her
savings account earns .89% compounded monthly
a. Rachel wants to know how long it will take her to save for the camera if she
makes monthly deposits of $75.
b. How much will she pay in the long run for the camera if she makes monthly
deposits of $75?
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oblem Set for Savings Account Goals ATH 113: Section 9.4b Page 2 of 2 3. Rachel still wants that new camera that costs $3800 for her photography business. Her savings account earns .89% compounded monthly a. Rachel wants to know how long it will take her to save for the camera if she makes monthly deposits of $75. b. How much will she pay in the long run for the camera if she makes monthly deposits of $75?

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Expert Answer

Step 1

a.

Calculate the maturity period to repay the debt as follows:

MS-Excel --> Formulas --> Financials --> NPER

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=NPER(0.89%,-75,,3800) Function Arguments ? NPER Rate 0.89% =0.0089 Pmt = -75 -75 Pv =number Fv 3800 3800 Туре | number 42.00684301 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 42.00684301 Help on this function ок Cancel X

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Step 2

Therefore, the maturity period is ...

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