You currently have $3,400 in an investment account that returns 11% per year.

How long will you have to wait until you can make a $5,000 down payment on a new car?

time period is 3.7 years

Explanation:

given data

currently amount = $3,400

returns = 11% per year = 0.11

down payment future value = $5,000

solution

we will apply here future value formula

Future value = Principle * (1 + r) ⁿ ... 1

put her value

$5,000 = $3,400 * (1 + 0.11) ⁿ

1.4706 = (1 + 0.11) ⁿ

now we will take log both side

log (1.4706) = log (1 + 0.11) ⁿ

0.1675 = n * 0.0453

n = 3.7 years

so time period is 3.7 years