SOLUTION: 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

Algebra.Com
Question 982833: 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?
Answer by solver91311(24713)   (Show Source): You can put this solution on YOUR website!




where is the future value of the investment, is the present value of the investment, is the interest rate per annum expressed as a decimal, is the number of compounding periods per year, and is the number of years.

So



If you want the number of months, or



if you want the number of years. You can do your own calculator work.

John

My calculator said it, I believe it, that settles it

RELATED QUESTIONS

You decide to put $150 in a savings account to save for a $3,000 down payment on a new... (answered by Boreal)
You decide to put $150 in a savings account to save for a $3,000 down payment on a new... (answered by swincher4391)
You decide to put $175 in a savings account to save for a $3,000 down payment on a new... (answered by FrankM)
Abdol Akhim has just come from a Personal Finance class where he learned that he can... (answered by solver91311,ikleyn)
John wants to buy a new sports car, and he estimates that he'll need to make a $3,025.00... (answered by Theo)
John wants to buy a new sports car, and he estimates that he'll need to make a $4,325.00... (answered by jorel1380)
Please help with this: How long will it take you to save up $3,500 for a down payment... (answered by rfer)
Laura has saved $1800 to use as a down payment on a new car. If she wants to continue... (answered by KMST)
You must decide whether to buy a new car for $20,000 or less the same car over a... (answered by Theo)