You're Trying to Save to Buy a New Car Valued

Multiple Choice

You're trying to save to buy a new car valued at $42,650.You have $40,000 today that can be invested at your bank.The bank pays 4.2 percent annual interest on its accounts.How long will it be before you have enough to buy the car for cash? Assume the price of the car remains constant.

A) 1.17 years
B) 2.12 years
C) 1.06 years
D) 1.61 years
E) 1.56 years