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alexandr1967 [171]
4 years ago
13

Tyron is saving up money for a down payment on a motorcycle. He currently has $5648, but knows he can get a loan at a lower inte

rest rate if he can put down $6355. If he invests the $5648 in an account that earns 6% annual, compounded monthly, how long will it take Tyron to accumulate the $6355
Business
1 answer:
Scilla [17]4 years ago
4 0

Answer:

monthly  time  = 1.966

Explanation:

given data

final amount = $6355

initial principal = $5648

rate = 6 %

solution

we get here time by this formula

amount = principal × (1+r)^{t}    ............1

put here value and we get time t

6355 = 5648 × (1+\frac{0.06}{12})^{12\times t}    

1.125 = (1.005)^{12\times t}  

take ln both side

ln 1.125 = ln  (1.005)^{12\times t}  

0.1177 = 12 × t × 4.9875 × 10^{-3}  

monthly  time  = 1.966

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