You are hoping to buy a house in the future and recently received an inheritance of

$24 comma 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

percent interest compounded annually, how many years will it be before your inheritance grows to

$34 comma 000

?

b.If you let your money grow for

9.75

years at

8

percent,

how much will you have?

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

$34 comma 000

if you move it into an account that pays

4

percent compounded annually? How long will it take your money to grow to

$34 comma 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?