It will take approximately 9.61 years to reach $7,000 with monthly deposits of $200 into an account that pays 5.7% interest compounded monthly.
To find out how long it will take to reach $7,000 with monthly deposits of $200 into an account that pays 5.7% interest compounded monthly, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal (initial deposit) = $200
r = the interest rate per period = 5.7% or 0.057
n = the number of compounding periods per year = 12
t = the number of years
By rearranging the formula, we get:
t = (1/n) * log(A/P) / log(1 + r/n)
Plugging in the values, we get:
t = (1/12) * log(7000/200) / log(1 + 0.057/12) = 9.61
So it will take approximately 9.61 years to reach $7,000.