Answer to Question #124356 in Financial Math for Kyle

Question

How many monthly deposits of $50 are needed to accumulate $3000 if the interest rate is 3.6% compounded monthly

Answer 1

A=P[1+r/n]^12t

300=50[1+0.036/12]^12t

300/50=[1+0.036/12]^12t

60=[1.003]^12t

Log 60= log [1.003]^12t

log 60= 12t log [1.003]

1366.83 =12t

t =1366.83÷12

=113.90 months

=113 months 27 days