Final answer:
To determine how long it will take for Reem to save $8,000 for her first car, A is the amount accumulated, P is the monthly deposit, r is the quarterly interest rate, and n is the number of months. we can use the formula for compound interest: A = P(1 + r)^n. It will take approximately 8.76 months for Reem to save $8,000.
Step-by-step explanation:
To determine how long it will take for Reem to save $8,000 for her first car, we can use the formula for compound interest:
A = P(1 + r)^n
A is the amount accumulated, P is the monthly deposit, r is the quarterly interest rate, and n is the number of months.
In this case, Reem deposits $900 at the end of each month, the interest rate is 4.5% quarterly, and she wants to save $8,000.
Solving for n:
$8,000 = $900(1 + 0.045)^n
Divide both sides by $900:
8.8889 = (1.045)^n
Take the logarithm of both sides to solve for n:
n ≈ 8.76 months
Therefore, it will take approximately 8.76 months for Reem to save $8,000 for her first car.