"If you invest $20,000 today for 5 years at 3% annually compounded quarterly, what is nper in the Excel formula?"
| nper stands for "Number of period of compounding". | |||||||||||||
| Interest is compoundinf quarterly .It means compounding is done 4 times in a year because there is 4 quarters in a year. | |||||||||||||
| Total period of compounding | = | Total Years x 4 times compounding per year | |||||||||||
| = | 5 x 4 | ||||||||||||
| = | 20 | ||||||||||||
| Thus, | |||||||||||||
| nper in excel formula is "20" | |||||||||||||
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