Recalculate part a using a compounding period that is 1, Financial Management

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Recalculate part a using a compounding period that is 1

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 9 years and earn an annual interest rate of 3 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 6 percent.

d. Recalculate part ?(a?) using a time horizon of 18 years at an annual interest rate of 3 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?)?

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Financial Management: Recalculate part a using a compounding period that is 1

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