By quitting smoking,Lisa could save $350 per month in an account with an effective rate of interest at 8.75%.How long will it take her to accumulate $100,000?
A) 13.1 years
B) 15.2 years
C) 12.8 years
D) 14.2 years

Question

Quizplus · Accepted Answer

A) You have to first find the monthly rate by (1+r)¹² = 1.0875, so r = .07015% per month. Then use the annuity formula to find N.

By Quitting Smoking,Lisa Could Save $350 Per Month in an Account