Answer:
9.16 years
Explanation:
To find the answer, we arrange the quantities in the following formula:
$5,475 (1 + 0.04)^x = $7,792
As it can be seen, we are solving for x, which is the period of time that it has taken for the initial $5,475 to become the final $7,792 that are needed for buying the car. Now we simply solve the equation:
(1+0.04)^x = $7,792 / $5,475
(1.04)^x = 1.4232
xlog 1.04 = log 1.432
x = log1.432 / log1.04
x = 9.16
