Calculate the future value of the following:
• $5,000 compounded annually at 6% for 5 years
• $5,000 compounded semiannually at 6% for 5 years
• $5,000 compounded quarterly at 6% for 5 years
• $5,000 compounded annually at 6% for 6 years
Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?