Financial calculator – Annuity problem?
How do I solve for the number of periods with an annuity on a financial calculator? (Which buttons to press)
Problem details: Guy wants to retire with $500,000 by investing $8,000 per year in the stock market (starting at the end of this year). 15% average annual return. How long to save money before retirement?
I had:
FV = 500,000
Interest Rate = 15
Payment = 8,000
0 N(15%, PMT 8,000, PV 0)
…this keeps coming out 0.. which makes sense from the formula (cause PV is 0). I now know the answer is 17 years from guessing, but I need to know how to do this on a calculator.
Any help is appreciated. Thank you.
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