FUTURE VALUE OF AN ANNUITY Find the future values of the following ordinary annuities:

a. FV of $400 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually

b. FV of $200 paid each 3months for 5 years at a nominal rate of 12% compounded quarterly

c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in Part b ends up larger than the one in Part

a. Why does this occur?

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