Mr. Bubble wants to sell his bubble machine for $1,000,000, but it might take awhile before it is valued that high. He bought it for $149,000 and is earning annual interest of 10% on the machine. How long will Mr. Bubble have to wait before the machine is valued at $1,000,000?
A) 20 years
B) 10 years
C) 5 years
D) More than 20 years

Question

Quizplus · Accepted Answer

= $149,000 / $1,000,000 = 0.149 on table present value of $1 (future value of $1 table can also be used. Take the 0.149 factor and find 10% next to 20 years. 20 years is the answer.

Mr Bubble Wants to Sell His Bubble Machine for $1,000,000