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Homework answers / question archive / You just received a bonus of ?$3,000

You just received a bonus of ?$3,000.

**a) **Calculate the future value of ?$3,000?, given that it will be held in the bank for 8 years and earn an annual interest rate of 7 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 14 percent.

**d) **Recalculate part ?(**a**?) using a time horizon of 16 years at an annual interest rate of 7 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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