if you deposit $700 a month in a savings account that earns 4% interest compounded monthly. how many months to get $3500 and what is the balance in the account.
payment = 700
amount = 3500
i = .04/12 = .003333...
n = ? , where n is in quarter years
700( 1.003333..^n - 1)/.003333... = 3500
1.0033333^n - 1 = .0166666
1.0033333^n = 1.0166666
n = log 1.016666../log 1.00333.. = 4.967 quarters
= 14.9 months
ummmhh, the balance in the account would be $3500, wasn't that the whole idea of the question?