You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 6% per year and you think you will need to have $8,000 saved for the down payment. How long will it be before the $4,000 has grown to $8,000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 6% per year and you think you will need
to have $8,000 saved for the down payment. How long will it be before the $4,000 has grown to $8,000 ?
To double the money you received from your grandparents, it will take
years. (Round to one decimal place.)
Transcribed Image Text:You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 6% per year and you think you will need to have $8,000 saved for the down payment. How long will it be before the $4,000 has grown to $8,000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.)
Expert Solution
Step 1

Given,

Future value is $8,000

Present value is $4,000

Rate is 6%

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