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Number of Periods (Term) Required for a Series of Level Payments to Grow to an Amount

Solver
	%	Interest Rate
		Number of Periods/Year
$		Deposit Amount
		Deposit Periods per Year
$		Future Value

Explanation

The Term of an annuity (total number of periods)required to reach a specified amount (future value) by a series of regular deposits.

Results

The term for the future value of an annuity is 8.46 periods.

Example

You are going to invest $500 per month until you have accumulated $30,000. If you can earn 8% compounded semi-annually on the investment how many semi-annual periods will it take to reach this goal?

You may enter your terms in the boxes above. Just click 'Solve' to calculate. Click 'Reset' to redisplay this example.

These calculations are presented for demonstration purposes only.
Contact Math Corporation for additional information.

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Thursday, Sep 9, 2010

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