inheritance as a down payment on your house.
You are hoping to buy a house in the future and recently received an inheritance of $16000. You intend to use your inheritance as a down payment on your house. (I have already answered a and b they are correct) Need help with c and d. thank you.
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 $34000? 9.79 years
b. If you let your money grow for 10.5 years at 8 percent, how much will you have? $35897.93
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c. How long will it take your money to grow to $34000 if you move it into an account that pays 4 percent compounded annually? How long will it take your money to grow to $34000 if you move it into an account that pays 13 percent? (my answer was 16.7 but it was wrong)
How long will it take your money to grow to $34000 if you move it into an account that pays 4 percent compounded annually? _______years(Round to one decimal place)
d. What does all this tell you about the relationship among interest rates, time, and future sums?
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