You're Trying to Save to Buy a New $210,000 Ferrari

question 48

Multiple Choice

You're trying to save to buy a new $210,000 Ferrari.You have $38,000 today that can be invested at your bank.The bank pays 4.1 percent annual interest on its accounts.How long will it be before you have enough to buy the car?

• A)39.13 years
• B)39.29 years
• C)40.67 years
• D)41.08 years
• E)42.54 years

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Definitions:

Secondary Reserve

Secondary Reserve includes assets that are not as liquid as primary reserves but can still be quickly converted into cash.

Board of Governors

The leading body of a federal reserve system, overseeing the policy direction and regulatory functions of the central bank.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, including regulating banks, managing inflation, and influencing interest rates.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for overseeing the nation's open market operations and making key decisions about interest rates and the growth of the United States money supply.