2

You're trying to save to buy a new $160,000 Ferrari. You have $44,000 today that can be invested at your bank. The bank pays 4.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Multiple Choice

a) 30.92 years

b) 33.42 years

c) 32.92 years

d) 32.67 years

e) 33.17 years

You deposit $1,600 at the end of each year into an account paying 10.6 percent interest. a. How much money will you have in the account in 25 years? b. How much will you have if you make deposits for 50 years