Question

Suppose you are committed to owning a $220,000 Ferrari. If you believe your mutual fund can achieve an annual return of 10.85 percent, and you want to buy the car in 8 years on the day you turn 30, how much must you invest today

Answer 1

2,291,520

Step-by-step explanation:

220,000×10.85%=23,870

23,870×96=2,291,520