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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 7 years and earn an annual interest rate of 6 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 12 percent. d. Recalculate part (a?) using a time horizon of 14 years at an annual interest rate of 6 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, Finance

Category:- Financial Management
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