PLZ HELP: You decide to put $2,000 in a savings account to save for a $3,000 down payment on a new car. If the account has an interest rate of 4% per year and is compounded monthly, how long does it take until you have $3,000 without depositing any additional funds?

121.862 years
12.1862 years
10.155 years
1.0155 years

Question

PLZ HELP: You decide to put $2,000 in a savings account to save for a $3,000 down payment on a new car. If the account has an interest rate of 4% per year and is compounded monthly, how long does it take until you have $3,000 without depositing any additional funds?

121.862 years
 12.1862 years
 10.155 years
 1.0155 years

Alexis1415 · Answer

Ok so, the answer is 10.155 years, so C.

So since there's $2,000 in your savings account and you're trying to get $3,000.
P=2000
A=3000

The interest rate is 4% so 4 divided by 100= 0.4

Then you need to compound it monthly. once you do all the math (it's a bit too much for me to type since I already wrote it down) then you get C "10.155 years"

I hope this helps!

NicktheBlade16 · Answer

Oh my gosh, you were the first to answer be explaining it. all the others said D.
Thank you so much

Alexis1415 · Answer

@nicktheblade16 wrote:

Oh my gosh, you were the first to answer be explaining it. all the others said D. Thank you so much

Of course c: