0.4 divided by 7.29
1 answer:
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Answer:
Approx 2.61 years.
Step-by-step explanation:
Given that you decide to put $5,000 in a savings account to save for a $6,000 down payment on a new car.
That means A=6000 and P=5000
If the account has an interest rate of 7% per year and is compounded monthly,
Then r=7%= 0.07 and n=12 (monthly)
Now we need to find about how long does it take until you have $6,000 without depositing any additional funds.
So let's plug these values into compound interest formula and fine time t
\left(1.00583333333333\right)[/tex]
Hence answer is approx 2.61 years.