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You just received a bonus of $1,000.
a. Calculate the future value of $1,000, given that it will be held in the bank for 7 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 14 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)?
a. What is the future value of $1,000 in a bank account for 7 years at an annual interest rate of 7 percent? $
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