How to calculate the number of months


Using the Time Value of Money calculator under the Lessons tab, answer the following question and submit your answer to this dropbox in the following format:

N=number of compounding periods (it also equals the number of payments)

I/Y=interest rate per year (use 9 for 9%...do not use .09)

FV=future value (the amount in the future you wish to accumulate)

PYMT=payment (the monthly investment/payment you will need to make)

P/Y=compounding periods per year (for monthly compounding, use 12)

Here is the question: If you desire to retire in 25 years and at retirement and accumulate $1,500,000, what amount must you invest each month? Assume monthly compounding when you calculate the number of months and the compounding periods per year. Also, use 9% per year as the interest rate.

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Accounting Basics: How to calculate the number of months
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