Question

You're trying to save to buy a new $180,000 Ferrari. You have $32,000 today that can...

You're trying to save to buy a new $180,000 Ferrari. You have $32,000 today that can be invested at your bank. The bank pays 6.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Multiple Choice

27.64 years

29.89 years

30.14 years

29.64 years

29.39 years

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Homework Answers

Answer #1

Future Value of amount to be saved for Ferrari = $180,000

Amount Invested today(Present Value) = $32,000

Calculating the no of years it will take to accumulate the amount to buy car using Excel "NPER" function:-

So, long it will be before you have enough to buy the car is 29.64 years

Option 4

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