If a person save 10000kr every month and the money increase by 7%, how long will it take until the person has 1000000

To calculate how long it will take for a person to accumulate 1,000,000 kr by saving 10,000 kr every month with a 7% annual interest rate, we need to use the formula for the future value of a series of monthly savings with compound interest:

\[
FV = P \times \frac{(1 + r/n)^{nt} - 1}{r/n}
\]

Where:
- \(FV\) is the future value (1,000,000 kr in this case).
- \(P\) is the monthly contribution (10,000 kr).
- \(r\) is the annual interest rate (7% = 0.07).
- \(n\) is the number of times the interest is compounded per year (monthly compounding, so \(n = 12\)).
- \(t\) is the time in years, which we need to find.

Let's solve this by trial or iteration to find \(t\). I'll calculate the necessary number of months it will take to reach 1,000,000 kr.It will take approximately **80 months**, or about **6 years and 8 months**, for the person to accumulate 1,000,000 kr by saving 10,000 kr each month with an annual interest rate of 7%.

Would you like further details or have any questions?

Here are 5 related questions you might explore:
1. How would the time change if the interest rate were 5% instead of 7%?
2. What if the monthly savings were increased to 15,000 kr?
3. How much interest would the person have earned by the time they reach 1,000,000 kr?
4. What is the total amount of money saved without interest in the same period?
5. How would compounding daily instead of monthly affect the time required?

**Tip:** Compound interest grows faster with more frequent compounding periods. Always check how often interest compounds when planning savings!

If a person saves 10000 kr every month and the money increases by 7%, how long will it take until the person has 1,000,000 kr?

Discover how long it will take to save 1,000,000 kr by contributing 10,000 kr monthly at a 7% annual interest rate. This compound interest calculation involves key financial formulas for savings growth. Suitable for advanced high school students or college-level learners.

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