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

6

years and earn an annual interest rate of

4

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

8

percent.

d.Recalculate part

(a)

using a time horizon of

12

years at an annual interest rate of

4

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)?

Question content area bottom

Part 1

a.What is the future value of

$4,000

in a bank account for

6

years at an annual interest rate of

4

percent?

$enter your response here

(Round to the nearest cent.)