Question 1140928
present value = 0
future value = 1,000,000
interest rate = 6% per year / 12 = .5% per month.
payment per month is equal to 400 dollars.
payment is made at the end of each month.
stick that in your financial calculator and have the calculator tell you what the number of months needs to be.


i did that with my TI-BA-II calculator and i got 521.8582002 months.


divide that by 12 and you get 43.48651668 years.


an online calculator that can do the same thing, except for the fact that it rounds the answer to the nearest penny can be found at <a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>


i gave it the same inputs and this it what it gave me back.


<img src = "http://theo.x10hosting.com/2019/051201.jpg" alt="%%%" >


my inputs were everything except the time periods.


the time periods are what the calculator returned after i clicked on np.


if you enter the payments as negative, then you have to enter the future value as positive, and vice versa.


the calculator is programmed to work that way.


the interest rate is entered as a percent.


if the time periods are months, then the interest rate per year is divided by 12 to get the interest rate per month and the number of years is multiplied by 12 to get the number of months.


in this problem, the calculator told you the number of months and you have to divide that by 12 to get the number of years.


any questions, write to dtheophilis@gmail.com