In: Finance
The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $10000 a year for this purpose and expects to earn 1.6625 percent, compounded quarterly. How long will it be until the family can purchase a home?
rate positively .. let me know if you need any clarification.
We have to use finanical calculator to solve this | |||
put in calculator | |||
FV | 250,000 | ||
PV | 0 | ||
I | 1.673% | ||
PMT | -10000 | ||
Compute N | 21.06 | ||
ans = | 21.06 | Year |