Question 579226


C = 500(1-.05)^n

n=number of months

a)

200 = 500(.95)^n

2/5 = (.95)^n; take log of both sides

log (2/5) = n(log .95)

n = (log 2/5)/(log .95)

n = 17.86 months

b)

n = 24 months

C = 500(.95)^24
C = 500(0.291989024)
C = $146