This is a future value of an annuity problem in which the number of periods is the unknown.

Suppose that a company’s goal is to accumulate $145,100 by making periodic deposits of $25,000 at the end of each year, which will earn 7.5% compounded annually while accumulating. How many deposits must it make? The $145,100 represents the future value of how many $25,000 deposits at a 7.5% annual rate of interest?

This is a future value of an annuity problem, in which the number of periods is the unknown.

First, plug in the known values into the appropriate cells:

The Payment – PMT – is ($25,000)

The interest rate – Rate – is 7.5%

The future value – FV – is $145,100.00

The function wizard pops up

Select Rate,

Select PMT,

Select NPER

Going to the formulas tab, look for the NPER function.