Annual interest on its accounts

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1. You're trying to save to buy a new $180,000 Ferrari. You have $38,000 today that can be invested at your bank. The bank pays 5.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

2. You are scheduled to receive $39,000 in two years. When you receive it, you will invest it for 9 more years at 7.0 percent per year. How much will you have in 11 years?

Reference no: EM131886613

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