Question

Kagiso wants to buy a new gaming computer for 40,000 he decided to save by depositing an amount of 400 quarterly into an amount earning 16% interest per year compounded quarterly the approximate number of what is it will take the visa to have 40,000 available is

1. 28 quarters

2. 41 quarters

3. 40 quarters

4. 12 quarters

Answer 1

The time that will take the visa to have 40,000 available can be computed using the "NPER" formula in Excel as shown in the table below.

Therefore, the correct answer is 41 quarters