Your grandmother just gave you $5 comma 000. You'd like to see what it might grow to if you invest it. a. Calculate the future value of $5 comma 000, given that it will be invested for 5 years at an annual interest rate of 8%. b. Recalculate part (a) using a compounding period that is semi annual (every six months). c. Now let's look at what might happen if you can invest the money at an annual rate of 16% rate rather than a 8% rate; recalculate parts (a) and (b) for an annual interest rate of 16%. d. Now let's see what might happen if you invest the money for 12 years rather than 5 years; recalculate part (a) using a time horizon of 12 years (annual interest rate is still 8%).
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