Question

You're trying to save to buy a new $150,000 Ferrari. You have $35,000 today that can be

Answer 1

Answer:

37.61 yrs  

Step-by-step explanation:

FV = future value = 150 000

PV = present value = 35 000

i = decimal interest = .04

annual interest periods = n

 formula    FV = PV ( 1 + i)^n      plug in the values and solve for 'n'

                 150 000 = 35000 ( 1 + .04)^n

                   150000/35000 = (1 + .04)^n      take log of both sides

                       .632 =  n log1.04

                             n = years = 37.105 years

Answer 2

Answer:

37.61 years

Step-by-step explanation:

I am assuming this is compound interest

35 multiplied by 1.04 to the power of 36.86 does not generate enough money.

35 multiplied by 1.04 to the power of 37.61 does.