Question: Please explain step by step how to solve this? Your grandmother just gave you $7,000. You'd like to see what it might grow to if

Please explain step by step how to solve this?Please explain step by step how to solve this? Your grandmother just

Your grandmother just gave you $7,000. You'd like to see what it might grow to if you invest it. a. Calculate the future value of $7,000, given that it will be invested for 5 years at an annual interest rate of 4%. b. Recalculate part (a) using a compounding period that is semiannual (every six months). c. Now let's look at what might happen if you can invest the money at an annual rate of 8% rate rather than a 4% rate; recalculate parts (a) and (b) for an annual interest rate of 8%. d. Now let's see what might happen if you invest the money for 12 years rather than 5 years; recalculate part (a) using a time horizon of 12 years (annual interest rate is still 4%)

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