Question

I keep getting the wrong answer on this question. Help please??
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?

Answer 1

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'.

Answer 2

I know how to set it up I just dont know the solving part. to get n

Answer 3

first divide both sides by 100

Answer 4

I get 30 =(1+.02/12) ^12t

Answer 5

yes now do the parenthesis .02/12

Answer 6

1.00166667
30= (1.00166667)^n

Answer 7

yes, now do u know how to use logs?

Answer 8

I know how to use them, but not here. That is the confusing part

Answer 9

ok is 2042.41 one of ur options?

Answer 10

Nope
170.202 years
14.3129 years
171.755 years
168.354 years

Answer 11

That is what i keep getting too though.

Answer 12

ohh i see u forgot to type in the ^12t

Answer 13

30 =(1+.02/12) ^12t

Answer 14

When i do that i get 170.201

Answer 15

so its a

Answer 16

yes, thank you :)

Answer 17

yes np :)