You have $50,000 invested in an account paying 3

Finance Nov 03, 2020

You have $50,000 invested in an account paying 3.50%. If you just finished paying your total college expenses for the coming year and your college costs $19,000 per year, how many years will your money last? (Treat your costs like an annuity with the first payment one year from today.)

Answer should be typed

Expert Solution

We see that the number of years is given as

Using financial calculator

PMT=-19000

PV=50000

I/Y=3.50%

FV=0

CPT N=2.8080

Using Excel

=NPER(3.50%,-19000,50000)=2.80880 years

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