You're hoping to purchase a house in the future and currently recieved an inheritance of $22,000. You intend to use your inheritance as a down payment on your house.
a. If you put your inheritance in an account that earns 9 percent interest compounded annually, how many years will it be before you inheritance grows to $33,000.
b. If you let your money grow for 9.5 years at 9 percent, how much will you have?
c. How long wil it take your money to grow to $33,000 if you move it to an account that pays 4 percent compounded annually? How long will it take your money to grow to $33,000 if you move it to an account that pays 11 percent?
d. What does this tell you about the relationship among interest rates, time, and future sums?