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( Related to The Business of Life: Saving for Your First House ) ( Future value ) You are hoping to buy a house in
Related to The Business of Life: Saving for Your First HouseFuture value You are hoping to buy a house in the future and recently received an inheritance of $ You intend to use your inheritance as a down payment on your house. a If you put your inheritance in an account that earns percent interest compounded annually, how many years will it be before your inheritance grows to $ b If you let your money grow for years at percent, how much will you have? c How long will it take your money to grow to $ if you move it into an account that pays percent compounded annually? How long will it take your money to grow to $ if you move it into an account that pays percent? d What does all this tell you about the relationship among interest rates, time, and future sums?
Related to The Business of Life: Saving for Your First HouseFuture value You are hoping to buy a house in the future and recently
received an inheritance of $ You intend to use your inheritance as a down payment on your house.
a If you put your inheritance in an account that earns percent interest compounded annually, how many years will it be before your inheritance
grows to $
b If you let your money grow for years at percent, how much will you have?
c How long will it take your money to grow to $ if you move it into an account that pays percent compounded annually? How long will it
take your money to grow to $ if you move it into an account that pays percent?
d What does all this tell you about the relationship among interest rates, time, and future sums?
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