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 10 years and earn an annual interest rate of 7 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 14 percent.
d. Recalculate part ?(a?) using a time horizon of 20 years at an annual interest rate of 7 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?)?