You can afford monthly deposits of $270 into an account that pays 3.0% compounded monthly. How long

Discussion in 'Calculator Requests' started by math_celebrity, Jan 8, 2017.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    You can afford monthly deposits of $270 into an account that pays 3.0% compounded monthly. How long will it be until you have $11,100 to buy a boat. Round to the next higher month.

    Set up our accumulation expression:
    270(1.03)^n = 11100
    1.03^n = 41.1111111

    Take the natural log of both sides
    n * Ln(1.03) = 41.1111111
    n = 3.71627843/0.0295588
    n = 125.72 so round up to 126
     

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