How many years will it be before the inheritance grows

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Reference no: EM13328477

You are hoping to buy a house in the future and recently received an inheritance of $22,000.00. You intend to use your inheritance as a down payment on you 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 $35,000?

b) If you let your money grow for 10.5 years at 7 percent, how much will you have?

c) How long will it take your money to grow to $35,000.00 if you move into an account that pays 3 percent compounded annually? How long will it take your money to grow $35,000.00 if you move it into an account that pays 11 percent?

d) What does all this tell you about the relationship among interest rates, time, and future sums?

Reference no: EM13328477

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