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dem82 [27]
3 years ago
5

You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $39,000. You

feel you can earn an APR of 10.5 percent compounded monthly and plan to save $485 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation?
Mathematics
1 answer:
wel3 years ago
5 0

Answer:

41.8 years

Step-by-step explanation:

From

A = P(1+r/n)^{nt}

A= 39000

r = 10.5%

P = $ 485

n=12

t = the unknown

t= [ ln(A) - ln(P) ] / n[ln(1 + r/n)]

t= ln 39000 - ln 485/ 12[ln(1+0.105/12)]

t= 10.57 - 6.18/0.105

t= 41.8 years

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