You're trying to save to buy a new $170,000 Ferrari. You have $40,000 today that can...

You're trying to save to buy a new $170,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Multiple Choice

27.02 years
25.02 years
27.52 years
26.77 years
27.27 years

Expert Solution

correct answer is option 1

27.02 years

jeff jeffy answered 2 years ago

You're trying to save to buy a new $180,000 Ferrari. You have $44,000 today that can be invested at your bank.

You're trying to save to buy a new $180,000 Ferrari. You have $44,000 today that can be invested at your bank. The bank pays 4.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

You’re trying to save to buy a new $195,000 Ferrari. You have $32,000 today that can...

You’re trying to save to buy a new $195,000 Ferrari. You have $32,000 today that can be invested at your bank. The bank pays 3.9 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 answer to 2 decimal places, e.g., 32.16.) length of time _____ years

You’re trying to save to buy a new $180,000 Ferrari. You have $29,000 today that can...

You’re trying to save to buy a new $180,000 Ferrari. You have $29,000 today that can be invested at your bank. The bank pays 3.6 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 answer to 2 decimal places, e.g., 32.16.) Length of Time in years?

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?

You're saving to buy a new truck that costs $35,000. You have $28,000 today that can...

You're saving to buy a new truck that costs $35,000. You have $28,000 today that can be invested at your bank. The bank pays 4.5 percent annual interest on its accounts. It will be ______ years before you have enough to buy the truck. (Round your answer to 2 decimal places. (e.g., 32.16))

You want to buy a boat that costs today $40,000. Your plan is to save monthly amount so that you will have enough money to purchase the boat three years from now.

You want to buy a boat that costs today $40,000. Your plan is to save monthly amount so that you will have enough money to purchase the boat three years from now. The rate of inflation of boats is expected to be 3% per year for the near future, and your bank pays an interest rate of 3% per year compounded monthly. How much money you should save every month to buy the boat three years from now?

The Turners have purchased a house for $170,000. They made an initial down payment of $40,000...

The Turners have purchased a house for $170,000. They made an initial down payment of $40,000 and secured a mortgage with interest charged at the rate of 7%/year compounded monthly on the unpaid balance. The loan is to be amortized over 30 yr. (Round your answers to the nearest cent.) (a) What monthly payment will the Turners be required to make? (b) How much total interest will they pay on the loan? (c) What will be their equity after 10...

You need to save a total of $7,500 in order to buy a new motorcycle. You...

You need to save a total of $7,500 in order to buy a new motorcycle. You are starting with savings of $4,000 but will make no additional contributions. The annual interest rate is 5%. In excel compute how long you would need to wait in order to reach your goal for interest that is compounded annually, semi-annually, quarterly, monthly, weekly, and daily. Which of the following accurately depicts this calculation?

You bought a new car today that cost you $40,000. You paid$2,000 DOWN and financed...

You bought a new car today that cost you $40,000. You paid $2,000 DOWN and financed the balance with a 4-year loan at a 2.99% annual promotional rate. How much is your monthly payment?N= I/Y= PV= PMT= FV=

Suppose you have a first job today, and you are planning to save 30% of your...

Suppose you have a first job today, and you are planning to save 30% of your annual wage at the end of the year. Your first-year annual wage will be $ 100,000 and it will grow by 3% per year. Assuming you work for 15 years in your first job, what is the present value of your saving for 15 years? The annual discount rate is given as 12% I. $ 238,455.1 II. $ 230,164.7 III. $ 158,970 IV. $...

Question