Problem 1 : Your mother just gave you 8.000 . a. Calculate the future of 8.000 , given that it will be invested for 10 years at annual interest rate of 8%. b. Recalculate part (a) using compounding period that is bimonthly. c. Now, lets look at what might happen if you invest the money at a rate 12% rather than 8%; recalculate part (a) for a semiannual interest rate. d. With respect to the changes in the interest rate and length of time the money is invested in parts a and c, what conclusion can you draw? Picture the problem, decide on a solution strategy, solve and analyze. Solution: