Alfred is saving up money for a down payment on a townhouse. He currently has $5016$ 5016, but knows he can get a loan at a lower interest rate if he can put down $5994$ 5994. If he invests the $5016$ 5016 in an account that earns 4.4%4.4% annually, compounded monthly, how long will it take Alfred to accumulate the $5994$ 5994? Round your answer to two decimal places, if necessary.

It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557

Explanation:

In order to calculate how long will it take Alfred to accumulate the $5994 we would have to use the following formula:

A=P (1+r/n) ∧n*t

P=$5,016

A=$5994

r=4.4%

n=1 annually

n=12 monthly

Therefore, t annually would be as follows:

5,994=$5,016 (1 + (4.4%/100) / 1) ∧1*t

t=4.1367

Therefore, t monthly would be as follows:

5,994=$5,016 (1 + (4.4%/100) / 12) ∧12*t

t=4.0557

It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557