You are hoping to buy a house in the future and recently received an inheritance of $22000.00. You intend to use your inheritance as a down
payment on you house.
a) Ia) If you put your inheritance in an account that earns 7 percent interest compounded
annually how many years will it be before your inheritance grows to $35000?
b) Ib) If you let your money grow for 10.5 years at 7 percent how much will you have?
c) c) How long will it take your money to grow to $35000.00 if you
move into an account that pays 3 percent compounded annually? How long will it take your money to grow $35000.00 if you move it into an account that pays 11
d) D) What does all this tell you about the relationship among
interest rates time and future sums?