Question

Donnie is saving up money for a down payment on a car. He currently has $4640, but knows he can get a loan at a lower interest rate if he can put down $5279. If he invested the $4640 in an account that earns 4.5% annually, compounded monthly, how long will it take Donnie to accumulate the $5279? Round your answer to two decimal places, if necessary.

Answer 1

34 periods, or 2.8 years