An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 PAY = 12 I/Y = 3.02 FV = 6,455.41 PMT= $-124 = years N= 192 to the nearest integer) PV = $14,892.17 x x (round = month(s)
An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 PAY = 12 I/Y = 3.02 FV = 6,455.41 PMT= $-124 = years N= 192 to the nearest integer) PV = $14,892.17 x x (round = month(s)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An amount of $124 is paid at the end of every month into an account. If the nominal
interest rate is 3.02% compounded semiannually, how long (in years and months) will it
take for the payments to accumulate to an amount of $6,455.41? Use the integer value
of N to calculate years and months.
|CN = |2
P/Y
=
12
I/Y = 3.02
FV 6,455.41
PMT = $ -124
= years
N= 192
to the nearest integer)
PV = $14,892.17 X
x (round
= month(s)
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