You%u2019re prepared to make monthly payments of $205, beginning at the end of t

Question

You%u2019re prepared to make monthly payments of $205, beginning at the end of this month, into an account that pays 11 percent interest compounded monthly.

How many payments will you have made when your account balance reaches $56,000? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

How many payments will you have made when your account balance reaches $56,000? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

No of periods required can be calculated in Excel as =NPER(11%/12,-205,0,56000,0). This is equal to 137.42 months.

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