Compound interest with nonannual periods)

a. Calculate the future sum of $5000, given that it will be held in the bank for 5 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 12 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 $5000 in a bank account for 5 years at an APR of 6 percent?

( ) (round to the nearest cent)