You are considering investing in a European bank account that pays a nominal annual rate of...
You are considering investing in a European bank account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,000 at the beginning of each month, how many months would it take for your account to grow to $108,000? Round fractional months up. Select the correct answer. a. 23 b. 13 c. 17 d. 15 e. 19
Homework Answers
The answer is calculated using the NPER function in Excel,
=NPER(0.18/12,-5000,0,108000)
=18.85 months
the answer by rounding the fractional month is e.19
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