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

@m_akram

Answer 2

@dan815

Answer 3

@StudyGurl14 help please

Answer 4

\(\large A=P(1+\Large\frac{r}{n})^{nt}\)

Answer 5

A = total money at the end of period
P = principal, or beginning amount of money
r = rate
n = amount of compounds per year (in this case, 12)
t = number of years

Plug in 3000 for A, and all the rest of the known values

Answer 6

and solve for t

Answer 7

which means that the t is going to be 119.954

Answer 8

ok so it would be \[3,000 = 150(1 + \frac{ .025 }{ 12 })^{12t}\]

Answer 9

yes

Answer 10

simplify it

Answer 11

and solve for t

Answer 12

so then t would equal 12.10732232 @StudyGurl14

Answer 13

@StudyGurl14

Answer 14

but thats not in my answers

Answer 15

how about, instead of trying to solve for t, you just plug in the answer choices into the equation until you get a value of A that is at least 3000

Answer 16

ok so its a

Answer 17

*A 10.1101 @StudyGurl14

Answer 18

the answer is 119.9540698 years B

Answer 19

No, a is not right

Answer 20

It is way off

Answer 21

THANK YOU!!! I didn't really get it at first...

Answer 22

Yes, B is correct. Did you try plugging in to see which answer choice got approx 3000?

Answer 23

Yes but both told me 3000

Answer 24

Who's way off ? It's B