You receive a bonus of 3,000
a. Calculate the future value of 3,000 given that it will be held in the bank for 6 years and earn an annual interest rate of 7%
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 14%.
d. Recalculate part (a) using a time horizon of 12 years at an annual interest of 7%.
e. What conclusions can you draw when you compare the answers in parts (c) and (d) with the answers in parts (a) and (b)