how long will it take Albert to accumulate the $5323? Round your answer to 2 decimal places.

Question

Albert is saving up money for a down payment on a house. He currently has $4718, but knows he can get a loan at a lower interest rate if he can put down $5323. If he invests the $4718 in an account that earns 5% annually, compounded quarterly, how long will it take Albert to accumulate the $5323? Round your answer to 2 decimal places.

Answer 1

Answere 18 quarters or 4.5 Years

 

On a business calculator

 

N=??

I= 4.1/4

PV=-4185

PMT= 0

FV=5019

 

Now hit N  you get 18 quarters =4.5 years

Points to remember PV and FV are opposite signs, put 0 (zero) in PMT. If you do not you may have a value left from the last problem. You must input 4 of the 5 variables.