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a. Calculate the future sum of 8,000​, given that it will be held in the bank...

a. Calculate the future sum of 8,000​, given that it will be held in the bank for 77 years at an APR of 66 percent.

​b. Recalculate part (a) using compounding periods that are​ (1) semiannual and​ (2) bimonthly​ (every two​ months).

c. Recalculate parts (a​) and (b​) for an APR of 12percent.

d. Recalculate part (a​) using a time horizon of 14 years​ (the APR is still 66 percent).

e. With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts (c​) and (d​), what conclusions do you draw when you compare these figures with the answers found in parts (a​) and (b​)?

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jeff jeffy answered 1 month ago
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