Mathematics, 22.05.2021 08:20 yfnal3x
Future Value of an Annuity for Various Compounding Periods
Find the future values of the following ordinary annuities.
FV of $600 each 6 months for 7 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.
$
FV of $300 each 3 months for 7 years at a nominal rate of 12%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.
$
The annuities described in parts a and b have the same amount of money paid into them during the 7-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part an over the 7 years. Why does this occur?
Please help me on that
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Future Value of an Annuity for Various Compounding Periods
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