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i now have $12,000 in the bank earning interest of 0.50% per month. i need $22,000 to make a down payment on a house. i can save an additional $100 per month. how long will it take me to accumulate the $22,000?

Respuesta :

It would about 55 months to reach the target future value of $22,000

What is the target future value?

The individual currently has $12,000 and intends to save $100 every month in order to reach a future value of $22,000, in other words, we can determine the number of monthly payments needed using a financial calculator which requires that the calculator be set to its end mode before making necessary inputs because monthly payments would occur at the end of each month:

I/Y=0.50(monthly interest of 0.50% without the percent sign)

PMT=-100(monthly savings, it is negative because it is a cash outflow for the individual making the savings)

PV=-12000(current account balance is the present value)

FV=22000(the targeted future amount is the future value)

CPT(press compute)

N=54.52(approximately 55 monthly payments)

Find out more about future value on:https://brainly.com/question/24703884

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