You\'re trying to save to buy a new $194,000 Ferrari. You have $44,000 today tha
ID: 2649527 • Letter: Y
Question
You're trying to save to buy a new $194,000 Ferrari. You have $44,000 today that can be invested at your bank. The bank pays 5.2 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))
You're trying to save to buy a new $194,000 Ferrari. You have $44,000 today that can be invested at your bank. The bank pays 5.2 percent annual interest on its accounts.
Explanation / Answer
Amount today 44,000.00 Time in years Rate ,r yearly 5.2% Time in Months Opening balance Intersest on Opening Bal Closing bal 1 44,000 2,288 46,288 2 46,288 2,407 48,695 3 48,695 2,532 51,227 4 51,227 2,664 53,891 5 53,891 2,802 56,693 6 56,693 2,948 59,641 7 59,641 3,101 62,743 8 62,743 3,263 66,005 9 66,005 3,432 69,438 10 69,438 3,611 73,048 11 73,048 3,799 76,847 12 76,847 3,996 80,843 13 80,843 4,204 85,047 14 85,047 4,422 89,469 15 89,469 4,652 94,121 16 94,121 4,894 99,016 17 99,016 5,149 104,165 18 104,165 5,417 109,581 19 109,581 5,698 115,279 20 115,279 5,995 121,274 21 121,274 6,306 127,580 22 127,580 6,634 134,214 23 134,214 6,979 141,193 24 141,193 7,342 148,536 25 148,536 7,724 156,259 26 156,259 8,125 164,385 27 164,385 8,548 172,933 28 172,933 8,993 181,925 29 181,925 9,460 191,386 30 191,386 9,952 201,338 Amount AT end of 29 Years 191,386.00 Amount at end of 30 Years 201,338.00 Interest in 20 Year 9,952.00 Interest Required to complete 194,000(194,000 - 191,386) 2,614.00 Time = 29 + 2614/9952 Time = 29.26 Years
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