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
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
