Time to accumulate a given sum Personal Finance Problem Manuel Rios wishes to determine how long it will take an initial deposit of $11,000 to double. a. If Manuel earns 12% annual interest on the deposit, how long will it take for him to double his money? b. How long will it take if he earns only 9% annual interest? c. How long will it take if he can earn 14% annual interest? d. Reviewing your findings in parts a, b, and c, indicate what relationship exists between the interest rate and the amount of time it will take Manuel to double his money a. If Manuel earns 12% annual interest, the amount of time to double his money is years. (Round to two decimal places.) b. If Manuel earns 9% annual interest, the amount of time to double his money is years. (Round to two decimal places.) C. If Manuel earns 14% annual interest the amount of time to double his money is years. (Round to two decimal places.) d. Reviewing your findings in parts a, b, and c. indicate what relationship exists between the interest rate and the amount of time it will take Manuel to double his money. (Select the best answer below.) OC A. The higher the rate of interest, the more time is required to accumulate a given future sum. OB. The higher the rate of interest, the less time is required to accumulate a given future sum. OC. The lower the rate of interest, the less time is required to accumulate a given future sum. D. The interest rate does not affect how long it will take to accumulate a given future value. Inflation, time value, and annual deposits Personal Finance Problem While vacationing in Florida. John Kelley saw the vacation home of his dreams. It was listed with a sale price of $174.000. The only catch is that John is 42 years old and plans to continue working until he is 65. John believes that prices generally increase at the overall rate of inflation and that he can earn 8% on his investments. He is willing to invest a fixed amount at the end of each of the next 23 years to fund the cash purchase of such a house (one that can be purchased today for $174,000) when he a retires. a. Inflation is expected to average 4% a year for the next 23 years. What will John's dream house cost when he retires? b. How much must John invest at the end of each of the next 23 years to have the cash purchase price of the house when he retires? c. If John invests at the beginning instead of at the end of each of the next 23 years, how much must he invest each year? a. When he retires. John's dream house will cost $ . (Round to the nearest cent.) b. The amount John must invest at the end of each of the next 23 years to have the cash purchase price of the house when he retires is (Round to the nearest cent) c. If John invests at the beginning instead of at the end of each of the next 23 years, the amount he must invest each year is $ (Round to the nearest cent.)