You're trying to save to buy a new $180,000 Ferrari. You have $32,000 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

Given an annual interest rate of 5%, it will take 35.4 years to accumulate $180,000.

Explanation:

Giving the following information:

Future Value (FV)= $180,000

Present value (PV)= $32,000

Interest rate (i)= 5%

To calculate the number of years (n) to reach the objective, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(180,000/32,000) / ln(1.05)

n= 35.4

Given an annual interest rate of 5%, it will take 35.4 years to accumulate $180,000.

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.