(Calculating compound interest with non-annual periods) (Related to Checkpoint 5.2 on page 168) You just received a $5,000 bonus.

a. Calculate the future value of $5,000, given that it will be held in the bank for five years and earn an annual interest rate of 6 percent.

b. Recalculate part a using a compounding period that is (1) semiannual and

(2) bimonthly.

c. Recalculate parts a and b using a 12 percent annual interest rate.

d. Recalculate part a using a time horizon of 12 years at a 6 percent interest rate.

e. What conclusions can you draw when you compare the answers to parts c and d with the answers to parts a and b?