Question

John really want a Mac Daddy fishing lure. This lure is made of 3 pounds of gold and platinum, adorned with 100 carats of diamonds and rubies. The cost of this lure? A cool $1 million. Right now,John can afford to put $10,000 in an account to save up for your ultimate fishing lure. a. If interest is compounded monthly at a rate of 6% per year, how long would it take for John to be able to afford the ultimate fishing lure? Round to the nearest year. b. What if interest was compounded continuously at a rate of 5.7%?

Answer 1