Question 1194351: Math
As an avid gamer, you are REALLY looking forward to the release of the new PS10, which promises to be the most immersive and perfect gaming system ever created. However, the listed price is a little steep at $4,000, and you are barely scraping by working at a minimum wage job. You decide to deposit all your current extra money, $500, into an account that pays 3.6% interest, compounded monthly. How long will it take for you to be able to buy the PS10?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.
r = 3.6% per year / 12 = .3% per month = .003 per month.
formula becomes 4000 = 500 * 1.003^n
divide both sides of the equation by 500 to get:
8 = 1.003^n
take the log of both sides of the equation to get:
log(8) = log(1.003^n) which becomes:
log(8) = n * log(1.003)
solve for n to get:
n = log(8) / log(1.003) = 694.1863822 months.
that's equivalent to 57.84886519 years.
let me know if you have any questions.
theo
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