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Homework Answers
Hi,
Please find the answer below :-
| Notes | ||||
| Given | Cost of House | 60000 | RM | |
| Given | Annual return on Savings | 9% | MonthlyCompounding | |
| Given | Monthly Savings (At the beginning of the month) | 3000 | RM | |
| To be calculated | Time | ? | ||
| As Compounding is monthly | Effective Annual Rate (EAR) :- [( 1 + Annual rate /12 ) ^12 ] -1 | 9.38% | ||
| EAR /12 | monthly Rate of interest | 0.78 | ||
| Change it to BEGINING mode | Using Financial Calculator Put below Values | |||
| I/Y = 0.78% | ||||
| PMT = -3000 | ||||
| FV= 6000 | ||||
| PV = 0 | ||||
| N= Compute | 18.52 | Months | ||
| Answer | Almost 1.5 years | |||
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