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You invest $1,190,000 into a retirement account and earn 9.00% per year, compounded monthly. At retirement...

You invest $1,190,000 into a retirement account and earn 9.00% per year, compounded monthly. At retirement your account balance is $5,430,000. Over how many years did you make this investment?

PLEASE ANSWER WITH EXCEL

Solutions

Expert Solution

We can use the Excel function=NPER() for this purpose.

The steps

The PV=$1,190,000

The interest rate=9%

Since it's compounded month divided it by 12

The Future value=$5,430,000

The formula used to compute the number of periods=NPER(B3/12,0,B2,-B5)

Divide the result by 12(since 12 months a year) and we get 16.92968 years

jeff jeffy answered 2 years ago
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