(Related to The Business of Life: Saving for Your First House) (Future value)
You are hoping to buy a house in the future and recently received an inheritance of $16,000. You intend to use your inheritance as a down payment on your house.
a. If you put your inheritance in an account that earns 8 percent interest compounded annually, how many years will it be before your inheritance grows to $34,000?
b. If you let your money grow for 9.5years at 8 percent, how much will you have?
c. How long will it take your money to grow to $34 ,000 if you move it into an account that pays 4 percent compounded annually. How long will it take your money to grow to ?$34,000 if you move it into an account that pays 11%
d. What does all this tell you about the relationship among interest rates, time, and future sums?
please round all the answer to one decimal.