Question

You are hoping to buy a house in the future and recently received an inheritance of $18,000. You intend to use your inheritance as a down payment on your house.

1. If you put your inheritance in an account that earns 88 percent interest compounded​ annually, how many years will it be before your inheritance grows to $33,000​?

2. If you let your money grow for 10.5 years at 88 percent​, how much will you​ have?

3. How long will it take your money to grow to $33,000 if you move it into an account that pays 44 percent compounded​ annually? How long will it take your money to grow to $33,000 if you move it into an account that pays 11 percent​?

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

1. If you put your inheritance in an account that earns 88 percent interest compounded​ annually, how many years will it be before your inheritance grows to $33,000​_______ years ​ (Round to one decimal​ place.)

Please show your work, Thank you=)

Answer 1