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you can afford to invest $150 per month in an annuity that earns 4% per year, compounded monthly. How long will it take before your investment is worth $6000?

Respuesta :

ajinems

The time it will take before your investment is worth $6000 = 7 years

Calculation of simple interest

The amount of money invested per month = $150

Therefore the amount principally invested yearly;

= 12 × 150 = $1,800

Simple interest = $6000

Rate = 4%

Time = ?

Using the formula for Simple interest (SI)= P×T×R/100

Make T the subject of formula,

T = SI × 100/P×R

T = $6000×100/1800×4

T = 600000/7200

T= 83 months/ 12 = 7 years

Learn more about simple interest here:

https://brainly.com/question/20690803

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