Linda baer has saved $5,000 for a previously owned vehicle. ignoring taxes and assuming her money is invested in a flexible withdrawal cd earning 5 percent compounded annually, how long will it take to buy a car that costs $7,755?
(5,000*0.05*x) + 5,000 = 7,755 (5,000*0.05*x) = 2,755 250x = 2,755 x = 11.02 Since there are 12 months in a year, not ten.. (11.02*10)/12=9.1833 and thats how you get 9
