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You're trying to save to buy a new $207,000 Ferrari. You have $57,000 today that can be invested at your bank. The bank pays 6.5 percent annual interest on its accounts. How long will it be before you
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7 votes
7 votes
You're trying to save to buy a new $207,000 Ferrari. You have $57,000 today that can be invested at your bank. The bank pays 6.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

User Andrei Shikalev
by
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1 Answer

17 votes
17 votes

Answer:

19.84 years

Step-by-step explanation:

Number of years = in ( fv / pv) / r

FV = future value

PV = present value

r = interest rate

IN(207000 / 57000) / 0.065

IN (3.631579) / 0.065 = 19.84

User Andrew Stubbs
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3.0k points
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