From the course: Excel: Analyzing and Visualizing Cash Flows

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Find the number of periods required to meet an investment goal

Find the number of periods required to meet an investment goal

From the course: Excel: Analyzing and Visualizing Cash Flows

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Find the number of periods required to meet an investment goal

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- [Instructor] Managing personal and corporate finances takes careful planning. If you want to know how long it will take you to reach a particular target value, starting with an investment that will grow at a known rate, you can use the P duration function to calculate how many periods it will take you to reach your goal. In this movie, I will show you how to perform that type of calculation. My sample file is the Reach Goal workbook, and you can find it in the chapter one folder of your exercise files collection. The P duration function takes three arguments. The first is the interest rate, expressed as an annual rate. So we have 4%. If our interest is compounded monthly, then we would want to divide that by 12, the number of months in the year. If it is compounded quarterly, we would divide by four. Semi-annually, divide by two, and so on. Next you need to know the amount of money you're starting with, in this case that is $60,000. And we would want to know how long it will take to…

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