Define relation between future values and interest rates

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Question: Calculate the future value in five years of $5,000 received today if your investments pay

a. 6 percent compounded annually

b. 8 percent compounded annually

c. 10 percent compounded annually

d. 10 percent compounded semiannually

e. 10 percent compounded quarterly What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?

Reference no: EM131632159

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