Question

(Future value)  You are hoping to buy a house in the future and recently received an inheritance of ​$22 comma 000. You intend to use your inheritance as a down payment on your house. a.  If you put your inheritance in an account that earns 9 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$32 comma 000​? b.  If you let your money grow for 10 years at 9 percent​, how much will you​ have? c.  How long will it take your money to grow to ​$32 comma 000 if you move it into an account that pays 5 percent compounded​ annually? How long will it take your money to grow to ​$32 comma 000 if you move it into an account that pays 13 percent​? d.  What does all this tell you about the relationship among interest​ rates, time, and future​ sums? a.  If you put your inheritance in an account that earns 9 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$32 comma 000​? nothing years ​ (Round to one decimal​ place.)

Answer 1