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17 September, 20:57

You're trying to save to buy a new $210,000 Ferrari. You have $30,000 today that can be invested at your bank. The bank pays 5.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car

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  1. 17 September, 23:02
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    39.88 years

    Explanation:

    Given that

    Future value = $210,000

    Present value = $30,000

    Annual rate of interest = 5%

    As we know that

    Future value = Present value * (1 + interest rate) ^number of years

    $210,000 = $30,000 * (1 + 0.05) ^number of years

    7 = (1 + 0.05) ^number of years

    After solving this, the number of years is 39.88 years
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