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    Sports Car: Finding the Present Value, and Buying a Ferrari

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    What is the present value given these assumptions:

    PV Periods Interest rate FV
    6 7% 15,451
    7 13 51,557
    23 14 886,073
    18 9 550,164

    Suppose you need $170,000 for a sports car. Assuming a 12% annual rate of return and the purchase occurs in 9 years, how much must you invest now?

    © BrainMass Inc. brainmass.com June 4, 2020, 4:24 am ad1c9bdddf
    https://brainmass.com/business/finance/sports-car-present-value-buying-ferrari-559762

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    Solution Summary

    The PV is computed using Excel functions, attached.

    $2.19

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