Answer:
72 months approx.
Step-by-step explanation:
Monthly deposit = m = $140
r = 3.8% or 0.038
Amount needed in the account = A = $11300
The formula will be :
[tex]11300=140(\frac{(1+0.038/12)-1}{0.038/12} )[/tex]
[tex]11300=140(\frac{(1+0.038/12)-1}{0.003166})[/tex]
[tex]11300=44219.83((1.003166)^{m}-1)[/tex]
[tex]0.2555=(1.003166)^{m}-1[/tex]
[tex]1.2555=(1.003166)^{m}[/tex]
m=log1.2555/log1.003166
m =71.98 ≈ 72
Hence, it will take 72 months approx.
