Answer:
Given the currents conditions, it will take 10 years to reach the amount required.
Explanation:
Giving the following information:
Linda Baer has already saved $3,978 to buy a used vehicle.
The account earns 6 percent compounded annually.
Final value= $7,124
To calculate the amount of time required we need to use the following formula:
n=[ln(FV/PV)]/ln(1+r)
n= [ln(7,124/3,978)]/ln(1+0.06)
n= 0.253/0.0253
n= 10
Given the currents conditions, it will take 10 years to reach the amount required.
