Time Value of Money-The Basics the account for 200 years. How much money will the city receive from Bob's generosity in 200 years? 5. (Related to Checkpoint 3) (Compound interest with non-annual periods) Calcula the amount of money that will be in each of the following accounts at the end of the given deposit period: Compounding Compounding Periods per Year (M) Annual Interest Rate 10% 12 12 Periods(Ye Deposited 1,000 95,000 8,000 120,000 30,000 15,000 Account Holder 10 S Theodore Logan III Vernell Coles Tina Elliott Wayne Robinson Eunice Chung Kelly Cravens 10 (Related to Checkpoint 2) (Compound interest with non-annual periods) You just received a $5,000 bonus. 6. 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 ulate 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 in parts (c) and (d) with the answers in parts (a) and (b)? (Related to Checkpoint 3) (Compound interest with non-annual periods) Your grandmother just gave you invest it. a. Calculate the future value of $6.000, given that it will be invested for five years at $6,000. You'd like to see what it might grow to if you b. Recalculate part (a) using a compounding period that is (1) semiannual and C. Now let's look at what might happen if you can invest the money at a 12 percent an annual interest rate of 6 percent. (2) bimonthly rate rather than 6 percent rate; recalculate parts (a) and (b) for a 12 percent annual interest rate d. Now let's see what might happen if you invest the money for 12 years rather than 5 years; recalculate part (a) using a time