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30 April, 00:53

Linda baer has saved $5,000 for a previously owned vehicle. ignoring taxes and assuming her money is invested in a flexible withdrawal cd earning 5 percent compounded annually, how long will it take to buy a car that costs $7,755 ?

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  1. 30 April, 01:01
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    The answer is 9 years

    (5,000*0.05*x) + 5,000 = 7,755 (5,000*0.05*x) = 2,755

    250x = 2,755

    x = 11.02

    Since there are 12 months in a year, not ten ...

    (11.02*10) / 12=9.1833

    and thats how you get 9
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