Asked by Amanda Crosby on Jun 15, 2024
Verified
Jericho wants to start saving to purchase a house.His goal is to save $95,000.If he deposits $56,000 into an account that pays 3.75% interest compounded daily,approximately how long will it take for his money to grow to the desired amount? Round your answer to the nearest tenth of a year.
Compounded Daily
The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a daily basis.
Interest
The cost of borrowing money or the return on investment for lending money, determined as a percentage of the principal amount.
Desired Amount
The specific sum of money or financial goal an individual or entity aims to achieve.
- Engage mathematical methodologies to project the future value of investments.
- Determine the time needed for an investment to grow to a desired amount with given interest rates.
Verified Answer
CA
Learning Objectives
- Engage mathematical methodologies to project the future value of investments.
- Determine the time needed for an investment to grow to a desired amount with given interest rates.