Question

28. Kay is saving $200 a month into an account earning 5% interest. How long will it

take her to save $20,000?

Answer 1

Explanation:

Accumulated value = $20,000.

A = P + I, P = principal, I = Interest.

I = 200*5*t/100

I = 1000t/100 = 10t

2000 = P + I = 200 + 10t

2000 - 200 = 10t

1800 = 10t, t = 180.

Therefore, it would take her 180 years to save $20,000.