You can afford monthly deposits of $130 into an account that pays 3.0% compounded monthly. How...

You can afford monthly deposits of $130 into an account that pays 3.0% compounded monthly. How long (in months) will it be until you have $11,400 to buy a boat?

Expert Solution

Monthly interest rate, r = 3%/12 = 0.0025 = 0.25%

I/Y = 0.25

PMT = -130

FV = 11400

PV = 0

CPT N

N = 79.387126 months

It will be 79.387126 months until we have $11,400 to buy a boat

jeff jeffy answered 2 years ago

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