Multiple Choice
Suppose you are committed to owning a $140,000 Ferrari. You believe your mutual fund can achieve an annual rate of return of 9 percent and you want to buy the car in 7 years. How much must you invest today to fund this purchase assuming the price of the car remains constant?
A) $74,208.16
B) $76,584.79
C) $77,911.08
D) $78,019.82
E) $79,446.60
Correct Answer:
Verified
Correct Answer:
Verified
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