You just received a bonus of â$4,000. a.ââCalculate the future value of â$4,000â, given that it will be held in the bank for 9 years and earn an annual interest rate of 6 percent. b.ââRecalculate part â(aâ) using a compounding period that isâ (1) semiannual andâ (2) bimonthly. c.ââRecalculate parts â(aâ) and â(bâ) using an annual interest rate of 12 percent. d.ââRecalculate part â(aâ) using a time horizon of 18 years at an annual interest rate of 6 percent. e.ââWhat conclusions can you draw when you compare the answers in parts â(câ) and â(dâ) with the answers in parts â(aâ) and â(bâ)? âWhat is the future value of â$4,000 in a bank account for 9 years at an annual interest rate of 6 âpercent?
You just received a bonus of â$4,000. a.ââCalculate the future value of â$4,000â, given that it will be held in the bank for 9 years and earn an annual interest rate of 6 percent. b.ââRecalculate part â(aâ) using a compounding period that isâ (1) semiannual andâ (2) bimonthly. c.ââRecalculate parts â(aâ) and â(bâ) using an annual interest rate of 12 percent. d.ââRecalculate part â(aâ) using a time horizon of 18 years at an annual interest rate of 6 percent. e.ââWhat conclusions can you draw when you compare the answers in parts â(câ) and â(dâ) with the answers in parts â(aâ) and â(bâ)? âWhat is the future value of â$4,000 in a bank account for 9 years at an annual interest rate of 6 âpercent?
