1. Calculate the future value of $5,000 in :
a. Four years at an interest rate of 7% per year.
b. Eight years at an interest rate of 7% per year.
c. Four years at an interest rate of 14% per year. for the # question use this formula : ( FVn = C*(1+r)^n
d. Why is the amount of interest earned in part ?(a?) less than half the amount of interest earned in part ?(b?)?
2. Calculate the future value of $2,000 in :
a. Four years at an interest rate of 7% per year.
b. Eight years at an interest rate of 7% per year.
c. Four years at an interest rate of 14% per year.
for the # question use this formula : ( FVn = C*(1+r)^n
d. Why is the amount of interest earned in part ?(a?) less than half the amount of interest earned in part ?(b?)?