Finance -Your are hoping to buy a house in the future
Subject: Business / Finance
Question
Your are hoping to buy a house in the future and recently received an inheritance of 24K. You intend to use your inheritance as a down payment on your house.
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A) If you put your inheritance in an account that earns 8% interest compound annually how many years will it be before your inheritance grows to $ 31000.
B) If you let your money grown for 9.75 years at 8 % how much will you have?
C) How long will it takes your money to grow to $ 31000 if you move it into an account that pays 3 % compound annually? How long will it take your money to grow to $ 31000 if you move it into an account that pays 12%.
D) What does all this tell you about the relationship among interest rates, time, future sums?
a) If you put your inheritance in an account that earns 8% interest compound annually how many years will it be before your inheritance grows to $ 31000. ( around to one decimal place).
b) If you let your money grow for 9.yrs at 8% how much will you have? ( round to the nearest cent)
c) How long will it take your money to grow to $ 31000 if you move it into an account that pays 3% compound annually? ( ( round one decimal place)
How long will it take your money to grow to $ 31000 if you move it into an account that pays 12%.
d) What does all this tell you the relationship among interest rates, and future sums?
There is a ( positive or negative ) relationship between both the interest rate used to compound a present sum and the number of years for which the compounding continues and the future value of that sum
