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Deposits of $850 per month are made into an investment account.
The interest rate is 6.5% per annum compounding monthly.
How long will it take for the investment to reach $100 000?

Respuesta :

anthougo

For the investment to reach $100,000 with monthly deposits of $850 at 6.5% compounded monthly, it will take 188 months or 15 years and 8 months.

How is the period of investment calculated?

To calculate the period of investment, we can use an online finance calculator as follows:

Data and Calculations:

I/Y (Interest per year) = 6.5%

PV (Present Value) = $0

PMT (Periodic Payment) = $850

FV (Future Value) = $100,000

P/Y (# of periods per year) = 12

C/Y (# of times interest compound per year) = 12

Results:

N = 187.717 months

Sum of all periodic payments = $159,559.45 (187.717 x $850)

Total Interest = $59,559.45

Thus, it will take 188 months for the investment to reach $100,000.

Learn more about investment periods at https://brainly.com/question/20392017

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