Question: You just received a bonus of $3000.00. A. Calculate the future value of $3000 given that it will be held in the bank for 5

You just received a bonus of $3000.00.

A. Calculate the future value of $3000 given that it will be held in the bank for 5 years and earn an annual interest rate of 7%

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%

D. Recalculate part (a) using a time horizon of 10 years at an annual interest rate of 7%

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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