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I am having a hard time with this. P5-6 (similar to) Question Help (Related to Checkpoint 5.2) (Compound interest with non-annual periods) You just received
I am having a hard time with this.
P5-6 (similar to) Question Help (Related to Checkpoint 5.2) (Compound interest with non-annual periods) You just received a bonus of $4,000. a. Calculate the future value of $4,000, given that it will be held in the bank for 8 years and ear 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 an annual interest rate of 12 percent. d. Recalculate part (a) using a time horizon of 16 years at an annual interest rate of 6 percent. 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 $4.000 in a bank account for 8 years at an annual interest rate of 6 percent? (Round to the nearest cent.)Step by Step Solution
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