Megan is saving to buy a car that cost $14,00.00 she currently has $12,500.00 in her savings account that earns simple interest at a rate of 6% if she does not add any other money to this account how long will it take before Megan has enough money to buy the car

Question

Owen Morton

Mathematics

15 February, 03:10

Megan is saving to buy a car that cost $14,00.00 she currently has $12,500.00 in her savings account that earns simple interest at a rate of 6% if she does not add any other money to this account how long will it take before Megan has enough money to buy the car

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Answers (1)

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Gideon Mcbride · Answer 1

2 years

Step-by-step explanation:

First make an equation to solve the problem. $12,500 is her starting balance, she needs $14,000. She has a interest rate of 6% which means her balance will increase.

If the time is in years add 1 to 0.06 because 1 represents the $12,500.

Equation: 12,500 x 1.06^x x = # of years

You can use guess an check which I used. plug in numbers for x such as 1,2,3

and see which one is closest to $14,000.