SOLUTION: How many years will it take to save $100000 if you place $1900 per month in an account that earns 11% compounded monthly?

Question 599893: How many years will it take to save $100000 if you place $1900 per month in an account that earns 11% compounded monthly?
Answer by unlockmath(1688) (Show Source): You can put this solution on YOUR website!
Hello,
The formula to use is A=P(1+r/n)^(tn)
A is the amount
P is the principle (how much is started with)
r is the rate
n is the number of times in the year it is compounded
t is the time
Plug in the data:
100000=1900(1+.11/12)^t12
Divide by 1900
52.6316=(1.009)^t12
Use log
Log 52.6316=12tlog 1.009
Divide 12log 1.009 to get:
(log 52.6316)/(12log 1.009)=t
T=37 years (rounded off)
Make sense?
RJ
www.math-unlock.com
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