You just received a bonus of $3,000.

a.Calculate the future value of $3,000, given that it will be held in the bank for 7 years and earn an annual interest rate of 8 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 16 percent.

d. Recalculate part (a) using a time horizon of 14 years at an annual interest rate of 8 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)?