You are hoping to buy a house in the future and recently received an inheritance of $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 7% interest compounded annually, how many years will it be before your inheritance grows to $31,000?

B. If you let your money grow for 9.5 years at 7%, how much will you have?

C. How long will it take your money to grow to $31,000 if you move it into an account that pays 3% compounded annually? How long will it take your money to grow $31,000 if you move it into an account that pays 11%?

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