(Future value)You are hoping to buy a house in the future andrecently ...

(Future value)â€ƒâ€ƒYou are hoping to buy a house in the future and recently received an inheritance...

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(Future value)â€ƒâ€ƒYou are hoping to buy a house in the future andrecently received an inheritance of â€‹$16,000. You intend to useyour inheritance as a down payment on your house. a.â€ƒâ€ƒIf you putyour inheritance in an account that earns 8 percent interestcompoundedâ€‹ annually, how many years will it be before yourinheritance grows to â€‹$35,000â€‹? b.â€ƒâ€ƒIf you let your money grow for10 years at 8 percentâ€‹, how much will youâ€‹ have? c.â€ƒâ€ƒHow long willit take your money to grow to â€‹$35,000 if you move it into anaccount that pays 3 percent compoundedâ€‹ annually? How long will ittake your money to grow to â€‹$35,00 if you move it into an accountthat pays 13 percentâ€‹? d.â€ƒâ€ƒWhat does all this tell you about therelationship among interestâ€‹ rates, time, and futureâ€‹ sums?

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4.5 Ratings (726 Votes)

If you put your inheritance in an account that earns 8 percent interest compoundedannually how many years will it be before your inheritance grows to 35000 FV PV1 rt Solving t lnFV PV ln1 r t ln3500016000 ln1008 07827 00769 See Answer

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