Interest

(Compound interest with no-annual periods) You just received a bonus of $2,000.

a. (Related to Checkpoint 5.2) Calculate the future value of $2,000 , given that it will be held in the bank for 10 years and earn an annual interest rate of 4%.
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 8%
d. Recalculate part (a) using a time horizon of 20 years at an annual interest rate of 4%
e. What conclusions can you draw when you compare the answers in parts (c) and (d) with the answers in parts (a) and (b)?
a. What is the future value of $2,000 in a bank account for 10 years at an annual interest rate of 4 percent? $______ (round to the nearest cent)