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Finance Assignment | Professional Writing

Author:
June 9th, 2020

Please answer each part legibly if you are completing by hand. Thank you!

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You are hoping to buy a house in the future and recently received an inheritance of $24,000. 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 $33,000?

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b.  If you let your money grow for 10.5 years at 7 percent how much will you​ have?

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c.  How long will it take your money to grow to $33,000 if you move it into an account that pays 5 percent compounded​ annually? How long will it take your money to grow to $33,000 if you move it into an account that pays 13 percent?

d.  What does all this tell you about the relationship among interest​ rates, time, and future​sums?

There is a 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.

Positive

Negative

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