If you get 50000 ROwith the nominal interest rate of 65 and

If you get 50000 ROwith the nominal interest rate of 6.5% and the deposited amount of 850R paid monthly basis. how many years will be taken to achieve the future sum?

Solution

Future Sum = 50000 RO
Monthly Deposit = 850 RO
Annual Interest Rate = 6.50%
Monthly Interest Rate = 0.5417%

Let n be the number of monthly deposits required to achieve the future sum.

850 RO * FVIFA(0.5417%, n) = 50000 RO

Using financial calculator:
FV = 50000
PMT = 850
I = 0.5417%
N = ??

Using financial calculator, we get N = 71.02

Number of Months = 71.02
Number of Years = 71.02 / 12 = 5.92 years