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anonymous

  • one year ago

You decide to put $100 in a savings account to save for a $3,000 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 $3,000 without depositing any additional funds?

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  1. anonymous
    • one year ago
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    Please help!! Will give a medal!!!

  2. rainbow_rocks03
    • one year ago
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    plz help

  3. anonymous
    • one year ago
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    Do you know it? @rainbow_rocks03

  4. rainbow_rocks03
    • one year ago
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    no sorry I don't

  5. anonymous
    • one year ago
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    Do the interest on on one whole year and then just multiply until you get 3000 or more and you'll find your answer.

  6. anonymous
    • one year ago
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    @PrincessRu How do you do that? These are my answer choices. I think the third one is right. 170.202 years 14.3129 years 171.755 years 168.354 years

  7. anonymous
    • one year ago
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    Wait now I am getting A

  8. anonymous
    • one year ago
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    But I am not a 100% postive at all.

  9. tkhunny
    • one year ago
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    Can you do the first month?

  10. anonymous
    • one year ago
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    @tkhunny Would you do 100 times .02?

  11. tkhunny
    • one year ago
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    .02 = 2% and is an annual rate. You need a monthly rate.

  12. anonymous
    • one year ago
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    So how do I do that? @tkhunny

  13. tkhunny
    • one year ago
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    You'll kick yourself. 0.02 / 12 = 0.00166666...

  14. anonymous
    • one year ago
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    hahaa! so then do I take that decimal and multipy it by something to get the years? @tkhunny

  15. tkhunny
    • one year ago
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    100 * 0.00166666 = 17¢ That's just the interest. You need to accumulate all the interest and the initial deposit. Annual Interest: 0.02 Monthly Interest: 0.02 / 12 Monthly Accumulation: 1 + (0.02 / 12) You task is to see how long this takes to get to $3000 \(100 [1 + (0.02/12)]^{n} = 3000\) Use your best logarithms to solve for 'n'.

  16. anonymous
    • one year ago
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    Wow I would have never gotten to that. I am not sure how to solve that. @tkhunny

  17. anonymous
    • one year ago
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    @tkhunny i got it to log29(.02/12)=n

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