(Future value) You are hoping to buy a house in the future and recently received an inheritance of $20,000. 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 your inheritance grows to $32,000? b. If you let your money grow for 9.75 years at 9 percent, how much will you have? c. How long will it take your money to grow to $32,000 if you move it into an account that pays 3 percent compounded annually? How long will it take your money to grow to $32,000 if you move it into an account that pays 11 percent? d. What does all this tell you about the relationship among interest rates, time, and future sums?
Chegg "experts" have given me wrong answers 4 times in a row on this, so please if you do not know how to answer this do not attempt to. I don't mean to be rude, but it is getting very frustrating. I want to learn how to do this problem, it is the only one I have left. The same 2 Chegg “experts” keeps answering the question and the answers are wrong that they are providing. If you are that person please don't answer this question that I post and allow someone else to answer it that knows how to solve it correctly.
(Related to The Business of Life: Saving for Your First House) (
a. If you put your inheritance in an account that earns 9 percent interest compounded annually, how many years will it be before your inheritance grows to $32,000?
b. If you let your money grow for 9.75 years at 9 percent, how much will you have?
c. How long will it take your money to grow to $32,000 if you move it into an account that pays 3 percent compounded annually? How long will it take your money to grow to $32,000 if you move it into an account that pays 11 percent?
d. What does all this tell you about the relationship among interest rates, time, and future sums?
Please answer all parts a-d and show steps.
Step by step
Solved in 3 steps with 2 images
