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28 Sep 2019
You are hoping to buy a house in the future and recently recieved 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 9 percent interest compounded annually, how many years will it be before you inheritance grows to $33,000.
b. If you let your money grow for 9.5 years at 9 percent, how much will you have?
c. How long wil it take your money to grow to $33,000 if you move it to an account that pays 4 percent compounded annually? How long will it take your money to grow to $33,000 if you move it to an account that pays 11 percent?
d. What does this tell you about the relationship among interest rates, time, and future sums?
You are hoping to buy a house in the future and recently recieved 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 9 percent interest compounded annually, how many years will it be before you inheritance grows to $33,000.
b. If you let your money grow for 9.5 years at 9 percent, how much will you have?
c. How long wil it take your money to grow to $33,000 if you move it to an account that pays 4 percent compounded annually? How long will it take your money to grow to $33,000 if you move it to an account that pays 11 percent?
d. What does this tell you about the relationship among interest rates, time, and future sums?
Nestor RutherfordLv2
28 Sep 2019
