Question

How long will it take Eniola to save $5,000 if she started with $500 and found a rate of 6. 2%? Round to the nearest whole number

Answer 1

38.28 years

Explanation:

The computation of the time period is shown below:

Given that

RATE = 6.2%

PV = $500

PMT = $0

FV = $5,000

The formula is shown below:

= NPER(RATE;PMT;-PV;FV;TYPE)

After applying the above formula, the time period is 38.28 years

Hence, in order to save $5,000 it would take 38.28 years