Yefim S. answered • 10/25/20

Math Tutor with Experience

FV = PMT((1 + i)^{nt} - 1)/i; FV·i/PMT + 1 = (1 + i)^{nt}; t = ln(FV·i/PMT + 1)/[nln(1 +i)];

WE have PMT = $270; FV = $6400; i = 0.039/12 = 0.00325; n = 12.

t = 1.9 year = 23 month

Jerry N.

asked • 10/25/20You can afford monthly deposits of $270 into an account that pays 3.9% compounded monthly.

How long will it be until you have $6,400 to buy a boat?

Type the number of months: ______

(Round to the next-higher month if not exact.)

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Yefim S. answered • 10/25/20

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FV = PMT((1 + i)^{nt} - 1)/i; FV·i/PMT + 1 = (1 + i)^{nt}; t = ln(FV·i/PMT + 1)/[nln(1 +i)];

WE have PMT = $270; FV = $6400; i = 0.039/12 = 0.00325; n = 12.

t = 1.9 year = 23 month

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