a$.$ Calculate the future sum of $$8,000,$ given that it will be held in the bank for $7$ years at an APR of $6$ percent.

b$.$ Recalculate part a using compounding periods that are $(1)$ semiannual and $(2)$ bimonthly $($every two months$).$

c$.$ Recalculate parts a and $b$ for an APR of $12$ percent.

d$.$ Recalculate part a using a time horizon of $14$ years $($the APR is still $6$ percent$).$

e$.$ With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts $c$ and $d,$ what conclusions do you

draw when you compare these figures with the answers found in parts a and $b?$

a$.$ What is the future sum of $$8,000$ in a bank account for $7$ years at an APR of $6$ percent?

$

$($Round to the nearest cent.$)$

b$.$ What is the future sum of $$8,000$ in a bank account for $7$ years at an APR of $6$ percent compounded semiannually?

$

$($Round to the nearest cent.$)$

What is the future sum of $$8,000$ in a bank account for $7$ years at an APR of $6$ percent compounded bimonthly $($every two months$)?$

$

$($Round to the nearest cent.$)$

c$.$ What is the future sum of $$8,000$ in a bank account for $7$ years at an APR of $12$ percent?

$

$($Round to the nearest cent.$)$

What is the future sum of $$8,000$ in a bank account for $7$ years at an APR of $12$ percent compounded semiannually?

$

$($Round to the nearest cent.$)$

What is the future sum of $$8,000$ in a bank account for $7$ years at an APR of $12$ percent compounded bimonthly $($every two months$)?$

$

$($Round to the nearest cent.$)$

d$.$ What is the future sum of $$8,000$ in a bank account for $14$ years at an APR of $6$ percent?

$

$($Round to the nearest cent.$)$

e$.$ With respect to the effect of changes in the stated interest rate and holding periods on future sums, which of the following statements

is correct? $($Select the best choice below.$)$

A$.$ An increase in the stated interest rate will increase the future value of a given sum. Likewise, an increase in the length of the holding

period will increase the future value of a given sum.

B$.$ An increase in the stated interest rate will increase the future value of a given sum. Whereas, an increase in the length of the holding

period will decrease the future value of a given sum.

C$.$ An increase in the stated interest rate will decrease the future value of a given sum. Likewise, an increase in the length of the holding

period will decrease the future value of a given sum.

D$.$ An increase in the stated interest rate will decrease the future value of a given sum. Whereas, an increase in the length of the holding

period will increase the future value of a given sum.