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

$20,000. 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 compoundedannually, how many years will it be before your inheritance grows to

$31,000?

B. If you let your money grow for 10.5 years at 8 percent, how much will youhave?

C. How long will it take your money to grow to $31,000 if you move it into an account that pays 3 percent compoundedannually? How long will it take your money to grow to

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

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