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Assume you received $8,000 today. Calculate the future value in five years of the $8,000 if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semi annually e. 10 percent compounded quarterly Discuss your answer. Specifically, what do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?

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Financial Management, Finance

Category:- Financial Management
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