Question
Asked Nov 14, 2019
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You currently have $4,000 in a bank account that pays a nominal rate of 1%, compounded monthly. You plan to make additional monthly deposits of $200, starting at the end of this month. How many payments will you have made when your account balance reaches $50,000?

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Expert Answer

Step 1

The interest that is calculated on all the accumulated interest of previous years or months plus initial principal amount is regarded as compound interest.

Step 2

Given:

Monthly payment = $200

Present value = $4000

Future value = $50,000

Nominal interest (compounded monthly) = 1%

Step 3

Calculations:

The no. of payments can be calculated b...

-NPER(K313/12, Kз14, к315, К316)
fix
К317
I
J
K
312
Nominal rate
1%
313
РMT
($200)
(S4,000)
50,000
314
PV
315
FV
316
NPER
207.3415816
317
510
ww
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-NPER(K313/12, Kз14, к315, К316) fix К317 I J K 312 Nominal rate 1% 313 РMT ($200) (S4,000) 50,000 314 PV 315 FV 316 NPER 207.3415816 317 510 ww

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