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How long will it be before you have enough to buy the car

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Reference no: EM132120460

You're trying to save to buy a new $190,000 BMW 3 series sedan. You have $40,000 today that can be invested t your bank. The bank pays 4.8% annual interest on its accounts. 

  1. How long will it be before you have enough to buy the car?
  2. If you believe your mutual fund can achieve a 12 percent annual rate of return and you want to buy the car in nine years on the day you turn 30, how much must you invest today?

Reference no: EM132120460

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