Question

You're prepared to make monthly payments of $400, beginning at the end of this month, into an account that pays 5 percent interest compounded monthly. How many payments will you have made when your account balance reaches $26,182?

Answer 1

58

Step-by-step explanation:

In this question we use the NPER function that is shown in the excel spreadsheet

Given that,

Present value = $0

Future value or Face value = $26,182

PMT = $400

Rate = 5% ÷ 12 months = 0.41666%

The formula is shown below:

= NPER(RATE,PMT,-PV,FV,type)

The PMT come in negative

So, after solving this, the number of payments is 58