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    Compounding interest on an investment

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    Could you please show how to reach a solution for the following problem, rounding the answer to the nearest year?

    You're trying to save to buy a new $170,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.3 percent interest on its accounts. How long will it be before you have enough to the buy the car?

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    Solution Preview

    You have to wait to buy the Ferrari until the amount on your deposit of $40000 becomes $170000. ...

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    A complete, neat and step-by-step solution is provided.