You have already saved $6750 to buy a used car. You invest this money in a certificate of deposit earning 0.70% APR compounded monthly. How many years will it take your account to reach your target of $7175 in order to buy the new car?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5MC: If you are saving the same amount each month in order to buy a new sports car when the new models...
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You have already saved $6750 to buy a used car. You invest this money in a certificate of
deposit earning 0.70% APR compounded monthly. How many years will it take your account
to reach your target of $7175 in order to buy the new car?
Transcribed Image Text:You have already saved $6750 to buy a used car. You invest this money in a certificate of deposit earning 0.70% APR compounded monthly. How many years will it take your account to reach your target of $7175 in order to buy the new car?
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