SOLUTION: small business invests R10 000 at the end of each month in an account that earns 6% p.a. compounded monthly. How long will it take until the business has R1 000 000 toward the pur

Question 1135950: small business invests R10 000 at the end of each month in an account that earns 6% p.a. compounded
monthly. How long will it take until the business has R1 000 000 toward the purchase of its own office
building? (Round your answer up to the next integer)
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
use a financial calculator to solve this, unless you need to use formulas.

using an online calculator that can be found at https://arachnoid.com/finance/

here's what the results look like.

$$$

your imputs to this calculator are:

present value = 0
future value = 1,000,000
interest rate percent per month = 6/12 = .5
payments at the end of each month are 10,000
click on NP and the calculator tells you that the number of months required is 81.3.
divide that by 12 and it becomes 6.775 years.

using the Texas Instruments BA-II financial calculator, i get 81.29558565 months.

the online calculator rounded it to one decimal digit.

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