Related to business of life-saving for your first house

Assignment Help Financial Management

Reference no: EM131346838

(Related to The Business of Life: Saving for Your First House) (Future value)

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 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 9.5years at 8 percent, how much will you have?

c. How long will it take your money to grow to $34 ,000 if you move it into an account that pays 4 percent compounded annually. How long will it take your money to grow to ?$34,000 if you move it into an account that pays 11%

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

please round all the answer to one decimal.

Reference no: EM131346838

Questions Cloud

How risk is assessed using the security market line : How risk is assessed using the security market line? What is the purpose of diversification stratagems? What types of instruments should Elizabeth include in the international portfolio?

Management plans to expand production capacity : EXTERNAL EQUITY FINANCING Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 45% with a $20 million investment in pla..

Do you think this case fall under the double jeopardy clause : Why do you think this case would be transferred into the federal system? Explain.In your own words, define double jeopardy.Do you think this case falls under the double jeopardy clause? Explain your reasoning.What type of documentation will you need ..

Find locomotion transport number while riding a bicycle : Find his locomotion transport number while riding a bicycle (assume his bicycle locomotion transport number is 25.0% of the minimum value shown on given Figure).

Related to business of life-saving for your first house : 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. What does all this tell you about the relationship among interest rates, time, and future..

Determine the specific molar activation entropy of death : If the specific molar activation enthalpy of death is 800. MJ/ kgmole, the compensation temperature is 330. K, and the constant β = -276 kJ/(kgmole.K), determine the specific molar activation entropy of death.

Design an inexpensive apparatus : Design an inexpensive apparatus that measures the energy conversion efficiency of an in vivo human arm or leg muscle.

Design a bomb calorimeter large enough to burn a sample : Design a bomb calorimeter large enough to burn a sample as large as 1 pound. Pay special attention to safety considerations in your design.

Design a system that measures the rate of metabolic heat : Design a system that measures the rate of metabolic heat production of a small warm-blooded animal. You may use either a direct or an indirect calorimetry technique.

User Account

All Pages