You're trying to save to buy a new $190,000 Ferrari. You have $31,000 today that can beinvested at your bank. The bank pays 3.8 percent annual interest on its accounts.How long will it be before you have enough to buy the car? (Do not round intermediatecalculations and round your aonswer to 2 decimal places, e.g., 32.16.)Length of timeyears

Present Value = $31,000 Future Value= $190,000 Interest Rate = 3.80% FV = PV* (1 + r)t Where, PV…

Answered: You're trying to save to buy a new…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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