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Future Value. You are hoping to buy a house in the future and recently 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 7 percent interest compounded annually, how many years will it be before your inheritance grows to $31,000?
b. If you let your money grow for 9.5 years at 7%, how much will you have?
c. How long will it take to grow to $31,000 if you move into an account that pays 3% compounded annually?
d. How long will it take to grow to $31,000 if you move into an account that pays 11% compounded annually?
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