Question

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​?

2. If you let your money grow for 10.25 years at 7 percent​, how much will you​ have?

3. 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​?

4. What does all this tell you about the relationship among interest​ rates, time, and future​ sums?

Answer 1