You just received a bonus of ​$4 comma 000. a. Calculate the future value of ​$4 comma 000​, given that it will be held in the bank for 7 years and earn an annual interest rate of 5 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 10 percent. d. Recalculate part ​(a​) using a time horizon of 14 years at an annual interest rate of 5 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​)?

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Answer:

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