Answer:
It will take 37 months to reach the $24,000 objective.
Explanation:
i= 0.06/12= 0.005
To determine the time required for $20,000 to reach $24,000 at a rate of 0.05%, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(24,000/20,000) / ln(1.005)
n= 36.55 = 37
It will take 37 months to reach the $24,000 objective.
