GotApex? Forums - View Single Post - Any finance gurus? Time value of money...

brain · 12-08-2003, 02:46 AM

I'm trying to finish one of my time value of money projects and I can't seem to figure out how to do certain problems without utilizing the tables. If anyone can help me with this problem, I would be very grateful.

Q: You want to buy a house and need a $25,000 down payment. If you can earn 5% on your money and can save $6,000 a year, how long will it be before you have your downpayment?

The only way I could do this problem was as follows:
25000/6000 = 4.167 and I went to do tables to find the number, but it's not there. I can only get an approximate estimate which would be in a little under 4 years.

12-08-2003, 02:46 AM	#1
brain Rear Admiral Upper Half Join Date: Jun 2000 Location: Sherman Oaks, CA Posts: 3,404	Any finance gurus? Time value of money... I'm trying to finish one of my time value of money projects and I can't seem to figure out how to do certain problems without utilizing the tables. If anyone can help me with this problem, I would be very grateful. Q: You want to buy a house and need a $25,000 down payment. If you can earn 5% on your money and can save $6,000 a year, how long will it be before you have your downpayment? The only way I could do this problem was as follows: 25000/6000 = 4.167 and I went to do tables to find the number, but it's not there. I can only get an approximate estimate which would be in a little under 4 years.