Question

In: Finance

3. You are hoping to buy a house in the future and recently received an inheritance...

3. You are hoping to buy a house in the future and recently received an inheritance of ​$16,000. You intend to use your inheritance as a down payment on your house.

  1. If you put your inheritance in an account that earns 7 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$34,000​?
  1. If you let your money grow for 10.25 years at 7 percent​, how much will you​ have?
  1. How long will it take your money to grow to ​$34,000 if you move it into an account that pays 5 percent compounded​ annually? How long will it take your money to grow to ​$34 comma 000 if you move it into an account that pays 13 percent​?
  1. What does all this tell you about the relationship among interest​ rates, time, and future​ sums?

Solutions

Expert Solution


Related Solutions

You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of ​$20,000.You intend to use your inheritance as a down payment on your house. a.  If you put your inheritance in an account that earns 7 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$30,000​? b.  If you let your money grow for 10.25 years at 7 percent​, how much will you​ have? c.  How long will it...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of 24,000. 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 31,000 b.  If you let your money grow for 10.25 years at 9 percent​, how much will you​ have? c.  How long will...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of ​$24,000. 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% interest compounded​ annually, how many years will it be before your inheritance grows to ​$33,000​? b) If you let your money grow for 9.5 years at 9%​, how much will you​ have? c) How long will it take...
  You are hoping to buy a house in the future and recently received an inheritance of...
  You are hoping to buy a house in the future and recently received an inheritance of ​$24,000. 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 ​$31,000​? b.  If you let your money grow for 9.5 years at 9 percent​, how much will you​ have? c.  How long will...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of ​$18,000. 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 ​$31,000​? b.  If you let your money grow for 10.5 years at 9 percent​, how much will you​ have? c.  How long will...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of ​$24,000. You intend to use your inheritance as a down payment on your house. a. If you put your inheritance in an account that earns 8 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$​30,000? b. If you let your money grow for 10.5 years at 8 percent​, how much will you​ have? c. How long will...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of ​$20 000. You intend to use your inheritance as a down payment on your house. a.  If you put your inheritance in an account that earns 8 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$33 000​? b.  If you let your money grow for 10.25 years at 8 percent​, how much will you​ have? c.  How...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of ​$16,000 You intend to use your inheritance as a down payment on your house. 1. If you put your inheritance in an account that earns 7 percent interest compounded​ annually, how many years will it be before your inheritance grows to $34,000? 2.If you let your money grow for 10 years at 7 percent how much will you​ have? 3.How long will it take...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of $24,000. You intend to use your inheritance as a down payment on your house. a. If you put your inheritance in an account that earns 8 percent interest compounded​ annually, how many years will it be before your inheritance grows to $34,000​? b. If you let your money grow for 10 years at 8 percent​, how much will you​ have? c. How long will...
You are hoping to buy a house in the future and recently received an inheritance of...
You are hoping to buy a house in the future and recently received an inheritance of $16,000. You intend to use your inheritance as a down payment on your house. a. If you put your inheritance in an account that earns 7 percent interest compounded​ annually, how many years will it be before your inheritance grows to $33,000? b. If you let your money grow for 10.25 years at 7 percent. how much will you have? c. How long will...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT