You just received a bonus of $4,000.
a. Calculate the future value of $4,000? given that it will be held in the bank for 5 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 10 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?)?