Question

You graduate and get a $10,000 check from your grandparents. You decide to save it toward a down payment on a house. You invest it earning 10% per year and you think you will need to have $20,000 saved for the down payment. How long will it be before the $10,000 has grown to $20,000?

Answer 1

10 years, you gain 10% interest per year, 10% of 10,000 is 1000, you’d gain 1000 yearly meaning in 10 years you will have $20,000 total.