Jill will have reached her goal of saving $23 000 to buy a car if she puts away $420 a month in a 7% annual interest savings account for four years.

Question

Quizplus · Accepted Answer

If Jill puts away $420 a month in a 7% annual interest savings account for four years, she will have saved:

$420 x 12 months x 4 years = $20,160

With an annual interest rate of 7%, the total amount at the end of four years would be:

$20,160 x (1 + 0.07)^4 = $25,055.65

Therefore, Jill will have reached her goal of saving $23,000 to buy a car, since $25,055.65 is greater than $23,000.

Jill Will Have Reached Her Goal of Saving $23 000