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Question 1: Calculate the future sum of $2,000?, given that it will be held in the bank for 6 years at an APR of 5 percent.
Question 2: Recalculate part a using compounding periods that are? (1) semiannual and? (2) bimonthly? (every two? months).
Question 3: Recalculate parts a and b for an APR of 10 percent.
Question 4: Recalculate part a using a time horizon of 12 years? (the APR is still 5 ?percent).
Question 5: With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts c and
Question 6: what conclusions do you draw when you compare these figures with the answers found in parts a and b??
Question content area bottom
Part 1
a. What is the future sum of $2,000 in a bank account for 6 years at an APR of 5 ?percent?
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