1.00 points 7. You\'re trying to save to buy a new $193,000 Ferrari. You have $4
ID: 2648163 • Letter: 1
Question
1.00 points
7.
You're trying to save to buy a new $193,000 Ferrari. You have $43,000 today that can be invested at your bank. The bank pays 5.1 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 final answer to 2 decimal places. (e.g., 32.16))
Number of years
8.
value:
1.00 points
Your coin collection contains 52 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2062, assuming they appreciate at a 4.3 percent annual rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
9.
value:
1.00 points
Assume that in 2010, a gold dollar minted in 1886 sold for $134,000. For this to have been true, what rate of return did this coin return for the lucky numismatist? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
You're trying to save to buy a new $193,000 Ferrari. You have $43,000 today that can be invested at your bank. The bank pays 5.1 percent annual interest on its accounts.
Explanation / Answer
Question 7). Solution :-
Future value = Present value * (1 + Rate of interest)Time period in years
193000 = 43000 * (1 + 0.051)Time period in years
193000 / 43000 = (1.051)Time period in years
4.488 (approx). = (1.051)Time period in years
(1.051)30.18 = (1.051)Time period in years
Time period in years = 30.18 Years (approx).
Conclusion :- It will take 30.18 years (approximately) to have enough money for buying the car.
Question 8). Solution :-
Future value = Present value * (1 + Rate of interest)Time period in years
= 52 * (1 + 0.043)2062 - 1952
= 52 * (1.043)110
= 52 * 102.6299
= $ 5336.755 (Rounded off to $ 5336.76)
Conclusion :- Future worth of collection at the time of retirement in Year 2062 = $ 5336.76 (approx).
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