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  3. 3 . your rich aunt sadly just passed, but she le

3 . Your rich aunt sadly just passed, but she left you $...

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Verified Solution

Question

Accounting

3
.
Your rich aunt sadly just passed, but she left you $
1
0
,
0
0
0
.
You are hoping to buy a house someday and know
that you will need $
4
0
,
0
0
0
to make the down payment on the home. You are perusing investment
opportunities and find one offering
9
.
0
5
0
8
%
per year over any maturity
(
i
.
e
.
as long as you like
)
.
(
a
)
If you
invest the full $
1
0
,
0
0
0
your aunt left you in this opportunity, how long must you wait for it to be sufficiently
large to meet your down payment needs?
(
b
)
What if you only needed $
2
0
,
0
0
0
for the down payment
-
how
long will you have to wait? Please solve both questions!

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