Answer to Question #157560 in Financial Math for Mohammed omar shifulla

Question

From today, how many months does Nour have to leave her money in the savings account for her to earn the $4700 she needs to buy a new machine for her cupcake shop?

Today, Nour’s savings are equal to $4100 and the savings account earns 6.50%.

Answer 1

4700=4100(1+0.065)ⁿ

4700/4100 = 1.065ⁿ

introducing log

log(47/41) = n log 1.065

log(47/41)/Log 1.065 = n

n = 2.168 years

= 27 months