Loans and investments
Lesson 9 of 9
Reaching a savings goal
Objective. Work out how long or how much is needed to reach a target.
The key idea
Without interest, months needed = target ÷ monthly amount. With interest, the balance grows a little faster each month, so the target arrives sooner.
Worked example
Save £3,000 at £250 a month with no interest.
- 13,000 ÷ 250 = 12.
Answer: 12 months
Practice
Each question comes with a picture and a listen button. Try it first, then reveal the answer.
Common mistake. Ignoring that interest is paid on the growing balance, not the original deposit.
Your progress
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