Question

Leslie is saving to purchase a Ferrari. She has no money to invest now, but will invest $3,200 each year for 15 years. By the end of the 15 years she will have her business established and will be able to make payments of $1,000 into the account each month. Finally she will let the money sit for ten years without making any payments and it will grow to $1,000,000, at which time Leslie can purchase the Ferrari of her dreams. Leslie's investment will earn 7.00%, monthly. How many payment of $1,000 must Leslie make in order for this plan to work?

Answer 1

		Type in excel
Amount to be invested each year	$                                          3,200.00
No of periods (years)	15
FV at 15 Years	$                                        80,412.87	"FV(84%,15,-3200,,0)"
FV at 25 Years of 80,412.87	$                                     1,58,184.29
Amount to be invested each month after 15 Years	$                                          1,000.00
FV required	10,00,000
FV at 25 Years of 80,412.87	$                                     1,58,184.29
Balance FV required	$                                     8,41,815.71
N =	305.56	"NPER(0.583%,-1000,,841815.71,0)"
N =	306
So Leslie should deposit 306 montly payments

Please Like the solution if satisfied with the answer and if any query please mention it in comments...thanks