Question
1)You are trying to save to buy a new $275,000 Ferrari. You have $72,000 saved today in your bank savings account. The Bank pays you
1)You are trying to save to buy a new $275,000 Ferrari. You have $72,000 saved today in your bank savings account. The Bank pays you an average annual rate of 2.9%. How long will it take you to before you have enough to buy the car (assume its price does not change)
2)You are REALLY interested in buying that Ferrari. You forecast that your hedge fund investment can return 11.2% after-tax and fees. To be able to buy the Ferrari in 9 years, on your 40th birthday, how much must you invest today?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
