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You're trying to save to buy a new $230,000 Ferrari. You have $41,000 today that can be invested at your bank. The bank pays 4.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? NOTE: In this problem there is only one cash flow (chapter 5 problem). FV = PV (1+r) is the equation you use. In this problem you are solving for t. Multiple Choice 38.93 years 39.68 years 39.43 years 37.18 years 39.18 years

You're trying to save to buy a new $230,000 Ferrari. You have $41,000 today that can be invested at your bank. The bank pays 4.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? NOTE: In this problem there is only one cash flow (chapter 5 problem). FV = PV (1+r) is the equation you use. In this problem you are solving for t. Multiple Choice 38.93 years 39.68 years 39.43 years 37.18 years 39.18 years

Essentials Of Investments
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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Bhupatbhai 

You're trying to save to buy a new $230,000 Ferrari. You have $41,000 today that can be invested at your bank. The bank pays 4.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? NOTE: In this problem there is only one cash flow (chapter 5 problem). FV = PV (1+r) is the equation you use. In this problem you are solving for t. Multiple Choice 38.93 years 39.68 years 39.43 years 37.18 years 39.18 years
Transcribed Image Text:You're trying to save to buy a new $230,000 Ferrari. You have $41,000 today that can be invested at your bank. The bank pays 4.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? NOTE: In this problem there is only one cash flow (chapter 5 problem). FV = PV (1+r) is the equation you use. In this problem you are solving for t. Multiple Choice 38.93 years 39.68 years 39.43 years 37.18 years 39.18 years
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