Question
In: Finance
You're trying to save to buy a new $80,000 speedboat to take to the lake. You...
You're trying to save to buy a new $80,000 speedboat to take to the lake. You have $65,000 today that can be invested at your bank. The bank pays 6% annual interest on its accounts. How long will it be before you have enough to buy the speedboat?
Solutions
Expert Solution
Future value = 80000
Present value = 65000
Interest rate per year = 6%
The number of years required can be solved by using NPER function of excel
=NPER(0.06,0,-65000,80000,0)
= 3.56 years
Hence after 3.56 years the speedboat can be bought
jeff jeffy answered 2 years agoRelated Solutions
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