You have $11,000 and will invest the money at an interest rate of. 33 percent per month until the account is worth $17,200. How many years do you have to wait until you reach your target account value

Question

Saul Hahn

Business

31 August, 17:47

You have $11,000 and will invest the money at an interest rate of. 33 percent per month until the account is worth $17,200. How many years do you have to wait until you reach your target account value

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Answers (1)

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Melanie Reynolds · Answer 1

1.5 years

Explanation:

The number of years for reaching the target value, it will be computed using the excel formula which is as:

=Nper (Rate, pmt, pv, fv, type)

where

nper is number of years

rate is 33%

Pmt is monthly payment which is $0

pv is present value which is - $11,000

fv is future value which is $17,200

type is 0

So, putting the values above:

=Nper (33%,0,-11000,17200,0)

=1.5 years

Therefore, the number of years it will take to reach the amount of $17,200 from investing $11,000 today is 1.5 years.