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  3. 15(a). an amount of $20,000 is invested at 6% for

15(a). An amount of $20,000 is invested at 6% for 10 years. Determine its future...

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15(a). An amount of $20,000 is invested at 6% for 10 years. Determine its future value if the interest is compounded i. Semi-annually, ii. Monthly, iii. Continuously. iv. Compare the results obtained in i, ii and iii. Which one would the consumer prefer, and which one would the bank prefer? Explain in full. b) There's a bond that originally cost $5000 with a yield of 6% (simple interest). It has 5 years left before redemption. i. If the prevailing rate of interest is 10%, what is the present value (PV)? Explain the steps in full. ii. Is this bond worth purchasing? Why? Explain

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