Question

Tony saved enough money to place $125,500 in an investment generating 9.25% compounded monthly. He wants to collect a monthly income of $1,350, at the beginning of each month, for as long as the money lasts. How many months will Tony have this income coming to himA) 165B) 145C) 192D) 162

Answer 1

Correct option is D

Step-by-step explanation:

PV = 125,500

FV = 0

pmt = -1350

rate = 9.25%/12

use nper function in Excel

Number of months = 162