Question

mike has $150,000 in savings. he would like to purchase a boat for $600,000. how many years will it be before mike has enough money to purchase the boat if he invests his savings at 5.25%?

Answer 1

Answer:It will take Mike 57 years to save enough money to purchase the boat.

Explanation:To calculate the number of years it will take for Mike to save enough money to purchase the boat, we can use the formula:

years = (600,000 - 150,000) / (150,000 * 5.25%/100)

Plugging in the values, we get:

years = (600,000 - 150,000) / (150,000 * 0.0525)

years = (450,000) / (150,000 * 0.0525)

years = 450,000 / 7,950

years = 56.57

Rounding up to the nearest year, it will take Mike 57 years to save enough money to purchase the boat.