Taylor is paid on the last day of the month and 580 is automatically deducted from her pay and deposited in a savings account. If the account pays 3.6% interest compounded monthly, how how long will it take for the savings account to reach $10,000? How much of the $10,000 saved is from interest?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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5. Taylor is paid on the last day of the month and 580 is automatically deducted from her pay and deposited in a savings
account. If the account pays 3.6% interest compounded monthly, how how long will it take for the savings account
to reach $10,000? How much of the $10,000 saved is from interest?
Transcribed Image Text:5. Taylor is paid on the last day of the month and 580 is automatically deducted from her pay and deposited in a savings account. If the account pays 3.6% interest compounded monthly, how how long will it take for the savings account to reach $10,000? How much of the $10,000 saved is from interest?
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