Question
In: Finance
How can you determine the unknown number of periods when you know the present and future...
- How can you determine the unknown number of periods when you know the present and future values – single amount or annuity – and the applicable rate of interest?
Solutions
Expert Solution
We can calculate the unknown number of periods using the excel sheet calculator given the details of present and future value and the applicable interest rate as follows:
The NPER function can be used to find the unknown number of periods as follows:
= NPER(rate,pmt,-pv,-fv)
For example we can take the annuity payment and Investment present and future values in below sheet
Formulas used in the excel sheet are:
Using the above examples we can figure out how to calculate the time period using the given values.
Hope I am able to solve your concern. If you are satisfied hit a thumbs up !!
jeff jeffy answered 1 year agoRelated Solutions
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