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Exercise 15

Avg difficulty 2.5

For each of the following scenarios, determine which formula from sections 2.2-2.4 to use and solve the problem.

Paul wants to buy a new car. Rather than take out a loan, he decides to save $200 a month in an account earning 3.5% APR compounded monthly. How much will he have saved up after 3 years?

Lee et al., Math in Society, §2.4 Loan Payments, Exercise 15

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Adapted from Math in Society © 2018–2024 Portland Community College Math Instructors. Licensed under CC BY-SA 4.0. Source: Math in Society. Imported at revision 68ee43c.