how long will it take Alfred to accumulate the $5019?

Question

Alfred is saving up money for a down payment on a house. He currently has $4185, but knows he can get a loan at a lower interest rate if he can put down $5019. If he invests the $4185 in an account that earns 4.1% annually, compounded quarterly, how long will it take Alfred to accumulate the $5019? Round your answer to 2 decimal places.

Answer 1

4.5 Years

 

On business calculator

N=?????

I= 1.025%     4.1%/4

PV=$4185

PMT=0

FV=  -$5019      Either PV or FV must be negative

 

Hit N  you get 18, but this is in quarters. To get years divide by 4. Final answer is 4.5 Years.