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jek_recluse [69]
3 years ago
13

You decide to put $100 in a saving account to save for a $3000 down payment on a new car. if the account has an interest rate of

2%per year and is compounded monthly, how long does it take you to earn $3000 without depositing any additional funds.
a) 170.202 yrs
b) 14.3129 yrs
c) 171.755 yrs
d) 168.354
Mathematics
1 answer:
valkas [14]3 years ago
4 0
Hi there
The formula is
A=p (1+r/k)^kt
A future value 3000
P present value 100
R interest rate 0.02
K compounded monthly 12
T time?
We need to solve for t
T=[log (A/p)÷log (1+r/k)]÷k
T=(log(3,000÷100)÷log(1+0.02÷12))÷12
T=170.202 years

So it's a
Hope it helps
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