You want to buy a car, so you invest $5000 today and wait until it grows to $10 000 before withdrawing it. The interest rate is 10% compounded monthly. Round all answers correctly to two decimal places and do not round to the nearest whole number.

(a) Use the Rule of 72 to estimate how many years it will take you to save up the money required.

It will take approximately Answer years using the Rule of 72.

(b) Using the formula for n, calculate the exact number of years you will need to wait before you can purchase the car.

n = Answer in compounding periods

t = Answer in years