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You want to buy your dream car which will cost you $5400. If you could invest...

You want to buy your dream car which will cost you $5400. If you could invest your entire savings of $3000 at an annual interest of11%, how long (in years rounded to two decimal places) would you have to wait until you have accumulated enough money to buy the car?

Solutions

Expert Solution

Time to wait is calculated using the NPER function as follows:

=NPER(rate,pmt,pv,fv)

=NPER(11%,,-3000,5400)

=5.63 years

Where,

rate is rate of return

pv is present value,

fv is future value

jeff jeffy answered 2 years ago
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