Question

Suppose that you are planning to buy a boat in the future for $100,000 [cell B2] and you deposit a lump sum of $60,000 CAD [cell B1] that earns an average annually compounding rate of return of 13% per year [cell B3].

(a)	How long (in years) would it take [cell B5] until you accumulate the lump sum needed? Use the NPER function.

(b)	What is the correct formula (using 18 characters or less) that should be placed in cell B5? Note: There are to be NO numbers in the function call (apart from a 0 if appropriate), only cell references, or negative cell references where appropriate.

Answer 1

Number of years taken is 4.18 years, until you accumulated the sum for boat.

Formula function in less than 18 words = =NPER(B3,0,-B1,B2)