In order to cover upfront expenses, Pinecrest Enterprises must be able to come up with $50 million of its own capital reserves. Presently, Pinecrest has $37 million in capital reserves available, and can add $1.5 million per month .

After how many months will Pinecrest Enterprises meet the reserve requirement? Round up to the next month.

(50-37)/1.5 = ?

Thank you

To find out the number of months it will take for Pinecrest Enterprises to meet the reserve requirement, we'll need to calculate the shortfall first. The shortfall is the difference between the required reserves ($50 million) and the current reserves ($37 million). Then, we can divide the shortfall by the monthly addition to determine how many months it will take to reach the required reserves.

Shortfall = Required Reserves - Current Reserves
Shortfall = $50 million - $37 million
Shortfall = $13 million

To calculate the number of months required, we divide the shortfall by the monthly addition:

Number of Months = Shortfall / Monthly Addition
Number of Months = $13 million / $1.5 million

Dividing $13 million by $1.5 million gives us:
Number of Months = 8.67

Since we need to round up to the next month, the answer is 9 months. Therefore, Pinecrest Enterprises will meet the reserve requirement in 9 months.