You receive a $3,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 8% per year anyou think you will need to have $6,000 saved for the down payment. How long will it be before the $3,000 has grown to $6,000 ?

Time period can be calculated by using the formula of the future value which tells the value of the…

Answered: You receive a $3,000 check from your…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You receive a $3,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 8% per year an you think you will need to have $6,000 saved for the down payment. How long will it be before the $3,000 has grown to $6,000 ?