Question

​ (Future value) You are hoping to buy a house in the future and recently received an inheritance of

​$22,000.

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% interest compounded​ annually, how many years will it be before your inheritance grows to ​$33,000​?

b.If you let your money grow for 10.5 years at 8% how much will you​ have? c. How long will it take your money to grow to ​$33,000

if you move it into an account that pays 5% compounded​ annually? How long will it take your money to grow to​$33,000

if you move it into an account that pays 12% ​?

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 8% interest compounded​ annually, how many years will it be before your inheritance grows to

​$33,000?  ​ (Round to one decimal​ place.)

Answer 1