(Answered) Question future value you are hoping to buy a house in the

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Question: (Future value) You are hoping to buy a house in the future and recently received an inheritance of $20,000. You intend to use your inheritance as a down payment on your house.

a. If you put your inheritance in an account that earns a 7 percent interest rate compounded annually, how many years will it be before your inheritance grows to $30,000?

b. If you let your money grow for 10.25 years at 7 percent, how much will you have?

c. How long will it take your money to grow to $30,000 if you move it into an account that pays 3 percent compounded annually?

d. How long will it take your money to grow to $30,000 if you move it into an account that pays 11 percent?

e. What does all of this tell you about the relationship among interest rates, time, and future sums?

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