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annuterm - Number of periods to obtain value

Syntax

NumPeriods = annuterm(Rate, Payment, PresentValue, FutureValue, 
Due)

Arguments

Rate

Interest rate per period, as a decimal fraction.

Payment

Payment per period.

PresentValue

Present value.

FutureValue

(Optional) Future value. Default = 0.

Due

(Optional) When payments are due: 0 = end of period (default), or 1 = beginning of period.

Description

NumPeriods = annuterm(Rate, Payment, PresentValue, FutureValue, Due) calculates the number of periods needed to obtain a future value. To calculate the number of periods needed to pay off a loan, enter the payment or the present value as a negative value.

Examples

A savings account has a starting balance of $1500. $200 is added at the end of each month and the account pays 9% interest, compounded monthly. How many years will it take to save $5,000?

NumPeriods = annuterm(0.09/12, 200, 1500, 5000, 0)

NumPeriods =
         15.68 months or 1.31 years.

See Also

amortize | annurate | fvfix | pvfix

  

 

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