Question

Need help ASAP please

Part 1:
You started saving for a car when you were in middle school. You have done some research and discovered that it will cost you about $9,500 for a used car that would fit your needs. You were encouraged to invest some of your savings to help you get to your financial goal faster. So far you have saved $7,500. If you invest this money in a savings account with a 3.3% interest rate compounded annually, how long will it take to earn enough money to go purchase the car? Use the compound interest formula A = P (1 + i)n, where A is the accumulated amount, P is the principal, i is the interest rate per year, and n is the number of years. Round your final answer to the nearest tenth.

Answer 1

7.3 years.

Explanation:

A = P(1 + i)^n

9500 = 7500(1 + 0.033)^n where n = number of years.

1.033^n = 9500/7500

n log 1.033 = log(9500/7500)

n = log(9500/7500)/log 1.033

n = 7.28 = 7.3.