Answer:
16 years
Step-by-step explanation:
Firstly we need to calculate his yearly savings if he saves $100 every month at a 3% yearly interest.
Simple interest = Principal * Rate * Time/100
Since he saves $100 per month, then in a year he will have saved 12* $100 = $1200
Calculating the interest paid on yearly savings;
Simple Interest = 1200*3*1/100
Simple Interest = $36
Amount saved yearly at 3% rate = $1200+$36 = $1236
If Sal is to save up to $20,000, it will take him up to ($20,000/$1236) i.e 16 years to reach his goal.
