Finance

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How long will it take you to accumulate $10,000 if you save $250 a month starting next month? Assume you can earn an APR of 2.4% on your savings.

  • Finance -

    i = .025/12 = .002083333..
    n = ?
    10000= 250( 1 - 1.00208333^-n)/.00208333
    .0833333 = 1 - 1.00208333^-n
    1.00208333^-n = .9166666
    take log of both sides and use log rules
    -n log 1.002083333 = log .916666
    -n = -41.8
    n = 41.8 months

    appr. 42 months

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