Question

You just received a bonus of $4 comma 000. a. Calculate the future value of $4 comma 000, given that it will be held in the bank for 7 years and earn an annual interest rate of 5 percent. b. Recalculate

asked Jul 20, 2021 126k views

You just received a bonus of $4 comma 000. a. Calculate the future value of $4 comma 000, given that it will be held in the bank for 7 years and earn an annual interest rate of 5 percent. b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly. c. Recalculate parts (a) and (b) using an annual interest rate of 10 percent. d. Recalculate part (a) using a time horizon of 14 years at an annual interest rate of 5 percent. e. What conclusions can you draw when you compare the answers in parts (c) and (d) with the answers in parts (a) and (b)?

Sartori asked

by Sartori

5.5k points

1 Answer

Ask a Question

0 Comments

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

0 Comments

Please log in or register to add a comment.

Other Questions