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You\'re trying to save to buy a new $202,000 Ferrari. You have $52,000 today tha

ID: 2638098 • Letter: Y

Question

You're trying to save to buy a new $202,000 Ferrari. You have $52,000 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? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

You're trying to save to buy a new $202,000 Ferrari. You have $52,000 today that can be invested at your bank. The bank pays 6.0 percent annual interest on its accounts.

Explanation / Answer

Present Value, PV 52000 Future Value, FV 202000 Interest rate, r (annual) 6.00% FV = PV(1+r)^n n' is number of years in above formula which can be calculated using excel function "=nper" So, type this in excel to get answer "=nper(rate,0,PV,FV,0)" No of years, n 23.29

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