Question
In: Finance
5. You just received a bonus of $3,000. A. Calculate the future value of $3,000, given...
5. You just received a bonus of $3,000.
A. Calculate the future value of $3,000, given that it will be held in the bank for 9 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 18 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)?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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