Question

FAN AND MEDAL: You decide to put $150 in a savings account to save for a $3,000 down payment on a new car. If the account has an interest rate of 2.5% per year and is compounded monthly, how long does it take you to earn $3,000 without depositing any additional funds?
10.1101 years
119.954 years
121.321 years
134.34 years

Answer 1

So how do we plug them in?

Answer 2

Sorry, never mind, I was wrong

Answer 3

How do I do this then? :(

Answer 4

Here- this is the formula for compound interest. A = P (1 + r/n) ^ nt

Answer 5

So how do I plug in the values?

Answer 6

Sorry slove for T. T is your answer.

A=150(1+0.025/12)^12(t)

Answer 7

Sorry for the mistakes. I'm new to the topic!

Answer 8

A=0.1325^12(t) right?

Answer 9

How did you get that?

Answer 10

@jim_thompson5910

Answer 11

@Hero

Answer 12

@Kash_TheSmartGuy I think I did it wrong the answer is A right>

Answer 13

\[\Large FV = PV*\left(1+\frac{r}{n}\right)^{n*t}\]
\[\Large 3000 = 150*\left(1+\frac{0.025}{12}\right)^{12*t}\]
solve for t

Answer 14

No idea! Completely new ti the topic.

Answer 15

Can someone take me step bty step I dont know how to solve for t

Answer 16

Ok now I know it..

Answer 17

First solve the brackets.. division first. Divide 0.025 by 12

Answer 18

480

Answer 19

What? No, it's 0.00208333333

Answer 20

Then add 1 to 0.00208333333

Answer 21

That would be 1.00208333333

Answer 22

Oh my bad, I did 12/0.025 okay so what is the next step?

Answer 23

@Kash_TheSmartGuy

Answer 24

@alexistheking777 , sorry for that.

Answer 25

3000=150*1.00208333333*12^t

Answer 26

Can you do it yourself?