You're trying to save to buy a new $210,000 Ferrari. You have $30,000 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

39.88 years      

Explanation:

Given that

Future value = $210,000

Present value = $30,000

Annual rate of interest = 5%

As we know that

Future value = Present value × (1 + interest rate)^number of years

$210,000 = $30,000 × (1 + 0.05)^number of years

7 = (1 + 0.05)^number of years  

After solving this, the number of years is 39.88 years    

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