221k views
3 votes
daniel is going to invest $35000. he has secured a fixed interest rate of 2.85% and looking to make $2250. how many months must he invest to meet his goal

1 Answer

4 votes

Final answer:

To meet his goal of making $2,250, Daniel must invest for approximately 10.8 months with a fixed interest rate of 2.85%.

Step-by-step explanation:

To calculate the number of months required to meet the goal, we can use the formula for compound interest:

Future Value = Principal * (1 + Interest Rate)Time

Given that the principal is $35,000, the future value is $2,250, and the interest rate is 2.85%, we can substitute these values into the formula:

$2,250 = $35,000 * (1 + 0.0285)Time

To solve for Time, we need to take the logarithm of both sides of the equation:

log((1 + 0.0285)Time) = log($2,250 / $35,000)

To isolate Time, we divide both sides of the equation by the logarithm of (1 + 0.0285):

Time = log($2,250 / $35,000) / log(1 + 0.0285)

Using the appropriate calculator or computer software, we can find that Time is approximately 10.8 months.

User Allan Hasegawa
by
7.6k points