How many deposits of $250 a month, beginning next month, are needed before an account has $200,000 in it, assuming it had a balance of $0 at the beginning and that interest is 6% per year, compounded monthly?
- 319.48
- No solution/Error
- 322.69
- 800.00
- 66.79
Answer(s): C
Explanation:
One of the two dollar amounts must be entered as a negative number and the other as a positive number or an error will result. On the BAII Plus, press 6 divide 12 = I/Y, 0 PV, 250 PMT, 200000 +/- FV, CPT N. On the HP12C, press 6 ENTER 12 divide i, 0 PV, 250 PMT, 200000 CHS FV, n. Note that the HP12C returns a result of 323. Make sure the BAII Plus has the P/Y value set to 1.
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