Answer:
It will take 337.18 years before you have enough to buy the car.
Explanation:
This can be calculated using the future value (FV) formula as follows:
FV = PV * (1 + r)^n ...................... (1)
Where:
FV = future value or the price of Ferrari = $180,000
PV = present value or thee amount you have today = $29,000
r = annual interest rate = 3.6%, or 0.036
n = number of years = ?
Substituting the values into equation (1) and solve for n, we have:
$180,000 = $29,000 * (1 + 0.036)^n
$180,000 - $29,000 = 1.036^n
151,000 = 1.036^n
Loglinearizing, we have:
log151,000 = nlog1.036
5.17897694729317 = n * 0.0153597554092142
n = 5.17897694729317 / 0.0153597554092142
n = 337.18
Therefore, it will take 337.18 years before you have enough to buy the car.
