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Question 4 (PV and Number of Period: 20 points) You're trying to save to buy a new 150,000 Porsche. You have 40,000 today that can

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Question 4 (PV and Number of Period: 20 points) You're trying to save to buy a new 150,000 Porsche. You have 40,000 today that can be invested at your bank. The bank pays 4.5% annual interest on its accounts. (a) How long will it be before you have enough to buy the car? (b) Suppose you are still committed to owning this 150,000 new Porsche. If you believe your mutual fund can achieve an 18 percent annual rate of return and you want to buy the car in 10 years on the day you turn 30, how much must you invest today

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