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You receive a $9,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it
You receive a $9,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 9% per year and you think you will need to have $18,000 saved for the down payment. How long will it be before the $9,000 has grown to $18,000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.) A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 1% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 8%, what is her promise worth today? The present value of the aunt's promise is $ . (Round to the nearest dollar.)
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