Question

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 interest 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

Answer 1

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