Question

You can afford monthly deposits of 140 into an account that pays 3.8% compounded monthly. How long will be untl you have $11.300 to buy a boat? Type the number of months: (Round to the next higher month it not exact Question He Check Answer Enter your answer in the answer box and then click Check Answer All parts showing

Answer 1

Answer:

72 months approx.

Step-by-step explanation:

Monthly deposit = m = $140

r = 3.8% or 0.038

Amount needed in the account = A = $11300

The formula will be :

$11300=140(\frac{(1+0.038/12)-1}{0.038/12} )$

$11300=140(\frac{(1+0.038/12)-1}{0.003166})$

$11300=44219.83((1.003166)^{m}-1)$

$0.2555=(1.003166)^{m}-1$

$1.2555=(1.003166)^{m}$

m=log1.2555/log1.003166

m =71.98 ≈ 72

Hence, it will take 72 months approx.