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You decide to put $100 in a savings account to save for a $3,000 down payment on a new car. If the account has an interest rate of 2% per year and is compounded monthly, how long does it take you to earn $3,000 without depositing any additional funds?

Verified Answer :

pkmnmushy

In order to solve this problem you would need to use the formula
FV = PV(1+r/n)^(nt)
If you do that then you may see the variables like this
FV = 3000
PV = 100
 r = 0.02
 n = 12 
After using all of them you get the total of 171.755 years. Hope this is very useful

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