? (Future value) You are hoping to buy a house in the future and recently received...

50.1K

Verified Solution

Question

Finance

? (Future value) You are hoping to buy a house in the future andrecently received an inheritance of
?$22,000.
You intend to use your inheritance as a down payment on yourhouse. a.If you put your inheritance in an account that earns
8% interest compounded? annually, how many years will it bebefore your inheritance grows to ?$33,000??
b.If you let your money grow for 10.5 years at 8% how much willyou? 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 amonginterest? 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 beforeyour inheritance grows to
?$33,000? ? (Round to one decimal? place.)

Answer & Explanation Solved by verified expert

4.5 Ratings (696 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

? (Future value) You are hoping to buy a house in the future andrecently received an inheritance of?$22,000.You intend to use your inheritance as a down payment on yourhouse. a.If you put your inheritance in an account that earns8% interest compounded? annually, how many years will it bebefore your inheritance grows to ?$33,000??b.If you let your money grow for 10.5 years at 8% how much willyou? have? c. How long will it take your money to grow to?$33,000if you move it into an account that pays 5% compounded?annually? How long will it take your money to grow to?$33,000if you move it into an account that pays 12% ??d. What does all this tell you about the relationship amonginterest? 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 beforeyour inheritance grows to?$33,000? ? (Round to one decimal? place.)