OK, PQ: Try the calculator I suggested, and if you have any problems, I will help you. Go ahead!.
+47 i am confused with the calculator :( it isnt commuting the problems correctly
OK. Open the calculator. Enter 3,000 under FV. Enter .04 x 100=4 under ir. Enter -600(make it negative) under PMT. Enter 0(zero) under PV. Press np key to give you the answer. Tell me what you got.
Here is our formula. I will assume the payment period is annually..
FV = A(((1+i)^n)-1)/(i)
3000 = 600(((1.04)^n)-1)/(.04)
Let's isolate 'n'
Divide by 600
5 = (((1.04)^n)-1)/(.04)
Multiply by .04
0.2 = (((1.04)^n)-1)
Add over the one
1.2 = (((1.04)^n))
Take log of both sides
ln(1.2) = n*ln(1.04)
Divide by ln(1.04)
(ln(1.2)/ln(1.04)) = n
n = 4.65
