A)calculate the future value of $6,000, given that it will be invested for 5 yea

Question

A)calculate the future value of $6,000, given that it will be invested for 5 years at an annual interest rate of 6 percent. B) recalculate part (a) using a compounding period that is semiannual (every 6 months). C) if you can invest the money at a 12 percent rate rather than 6 percent rate; recalculate parts (a) and (b) for a 12 percent annual interest rate. D) if you invest the money for 12 years rather than 5 years recalulate part (a) using a time horizon of 12 years (annual interest rate is still 6 percent).

Explanation / Answer

OK, here's a few.

6,000(1.06)^5= 8,029.35

6,000(1 +.06/2)^10= 8,063.50

6,000(1.12)^5= 10,574.05

6,000(1.06)^10= 10,745.09

I assume you can do the rest following these examples.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.