(Related to The Business ofLife: Saving for Your FirstHouse) (Future value)You are hoping to buy a house in the future and recently received an inheritance of $22000

22,000. You intend to use your inheritance as a down payment on your house.

a.If you put your inheritance in an account that earns 8

8 percent interest compoundedannually, how many years will it be before your inheritance grows to $31000

31,000?

b.If you let your money grow for 9.75

9.75 years at 8

8 percent, how much will youhave?

c.How long will it take your money to grow to $3000

31,000 if you move it into an account that pays 3

3 percent compoundedannually? How long will it take your money to grow to $31000

31,000 if you move it into an account that pays 13

13 percent?

d.What does all this tell you about the relationship among interestrates, time, and futuresums?