Parker only has $1,590 today but needs $2,979 to buy a new computer. How long will he have to wait to buy the computer if he earns 5.7 percent compounded annually on his savings? Assume the price of the computer remains constant. A) 11.83 years B) 11.48 years C) 12.51 years D) 12.77 years E) 11.34 years 12.51 years 11.32 years 12.77 years 11.83 years
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We can use the formula for compound interest: A = P(1 + r/n)^(nt) Where: A = the future value of the investment/loan, including interest P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the Show more…
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