Your grandmother just gave you $7,000. You'd like to see what it might grow to if you invest it. a. Calculate the future value of $7,000, given that it will be invested for 5 years at an annual interest rate of 4%. b. Recalculate part (a) using a compounding period that is semiannual (every six months). c. Now let's look at what might happen if you can invest the money at an annual rate of 8% rate rather than a 4% rate; recalculate parts (a) and (b) for an annual interest rate of 8%. 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 horizon of 12 years (annual interest rate is still 4%). Click on the table icon to view the FVIF table a. Calculate the future value of $7,000, given that it will be invested for 5 years at an annual interest rate of 4%. If you invest for 5 years at 4% annually, the future value is $ - (Round to the nearest cent.) 1|1.0101.02011.0301.040 1.050 1.060 1.070 1.080 1.090 1.100 21.020 1.04011.0611.082 1.1031 1.124 1.145 1.166 1.188 1.210 31.0301.0611.09311.125 1.158 1.191 1.225 1.260 1.295 1.3311 41.0411.08211.1261.170 1.216 1.262 1.311 1.360 1.412 1.464 51.0511.1041.1591.217 1.276 1.338 1.403] 1.469 1.539 1.611|| 61.0621.12611.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 71.0721.14911.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 8|1.0831.1721.2671.369 1.477 1.594 1.718 1.85 1.993 2.144 91.0941.19511.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 1011.105 1.2191.3441.480 1.629 1.791 1.967 2.159 2.367 2.594 111.1161.2431.3841.539 1.710 1.898 2.105 2.332 2.580 2.853 1211.1271.2681.4261.601 1.796 2.012 2.252 2.518 2.813 3.138 131.13811.2941.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 141.149 1.3191.5131.732 1.980 2.261 2.579 2.937 3.342 3.797 1.110 1.232 1.368 1.518 1.685 1.870 2.076 2.305 2.558 2.839 3.152 3.498 3.883 4.310 1.120 1.130 1.254 1.277 1.405 1.443 1.574 1.630 1.762 1.842 1.974 2.082 2.21|| 2.353 2.476 2.658 2.773 3.004 3.106 3.395 3.479 3.836 3.896 4.335 4.363 4.898 4.887 5.535 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261/ 1.150 1.323 1.521 1.749 2.011 2.313 2.660 3.059 3.518 4.046 4.652 5.350 6.153 7.076 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.4111 5.117 5.936 6.886 7.988 1.170 1.369 1.602 1.874 2.192 2.565 3.001 3.5111 4.108 4.807 5.624 6.580 7.699 9.007 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147
