You're trying to save to buy a new $160,000 Ferrari. You have $56,000 today that can be invested at your bank. The bank pays 6 percent annual interest on its accounts. How many years will it be before you have enough to buy the car? Assume the price of the car remains constant.
A)16.67 years
B)17.04 years
C)17.41 years
D)17.87 years
E)18.02 years

Question

Quizplus · Accepted Answer

$160,000 = $56,000 F1F1F1S1F1F1F10 (1 + .06)^t; t = 18.02 years

You're Trying to Save to Buy a New $160,000 Ferrari