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Drederick Tatum promised himself to save at the beginning of

Question : Drederick Tatum promised himself to save at the beginning of : 9643

Drederick Tatum promised himself to save at the beginning of each period. His goal is to save $7,500 for a down payment on a new car. Given an annual interest rate of 8.5% (compounded periodically), how many years will it take him to reach his goal if he: a) Makes a $125 payment monthly? b) Makes a $400 payment quarterly? c) Makes a $1,500 payment annually? Which option will allow him to reach his goal the fastest?

I have to enter the problem into an excel spreadsheet like this one:

Relevant Information

 

 

 

 

 

Annual Interest Rate

 

 

 

 

 

Periods Per Year

 

 

 

 

 

Number of Years

 

 

 

 

 

 

 

 

 

 

 

Needed Information

 

 

 

 

 

Present Value

 

 

 

 

PV

Future Value

 

 

 

 

FV

Payment

 

 

 

 

PMT

Rate

 

 

 

 

RATE

Number of Periods

 

 

 

 

NPER

 

 

 

 

 

 

Additional Calculations (if needed)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

           

 

Solution
5 (1 Ratings )

Solved
Finance 1 Year Ago 144 Views
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