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anonymous

  • 5 years ago

Bob needs $3852 to have some repairs done on his house. He decides to deposit $150 at the end of each month into an annuity earning 7% interest compounded monthly. When will he be able to do the repairs? (Round your answer to the nearest month.)

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  1. anonymous
    • 5 years ago
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    3852 = 150(1.07)^t

  2. anonymous
    • 5 years ago
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    Thank you so much! It's 24 months :)

  3. dumbcow
    • 5 years ago
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    3852 = 150*[(1.005833)^t - 1)/0.005833] This is a future value problem involving a geometric series of payments not a simple compound interest problem but yes the answer is 24

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