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 $32,000?

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

C. How long will it take your money to grow to $32,000 if you move it into an account that pays 4 percent compounded annually? How long will it take your money to grow to $32,000 if you move it into an account that pays 12 percent?

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