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Donnie is saving up money for a down payment on a motorcycle. He currently has $4086, but knows he can get a loan at a lower interest rate if he can put down $4962. If he invests the $4086 in an account that earns 5.9% annually, compounded monthly, how long will it take Donnie to accumulate the $4962? Round your answer to two decimal places, if necessary.

 Nov 7, 2021
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i = interest per period =  .059 / 12

p=  periods = what you are looking for (months)

Final amount = 4962

 

 

4962 = 4086 ( 1 + .059/12)p       Solve for 'p' months 

 Nov 7, 2021

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