16. Annuities and compounding Personal Finance Problem Janet Boyle intends to deposit $360 per year in a credit union for the next 5 years, and the credit union pays an annual interest rate of 11% a. Determine the future value that Janet will have in 5 years, given that end-of-period deposits are made and no interest is withdrawn, if (1) $360 is deposited annually and the credit union pays interest annually. (2) $180 is deposited semiannually and the credit union pays interest semiannually (3) $90 is deposited quarterly and the credit union pays interest quarterly b. Use your finding in part a to discuss the effect of more frequent deposits and compounding of interest on the future value of an annuity a. (1) If $360 is deposited annually and the credit union pays interest annually, the future value that Janet will have at the end of 5 years is $ (Round to the nearest cent.) (2) If $180 is deposited semiannually and the credit union pays interest semiannually, the future value that Janet will have at the end of 5 years is $ (Round to the nearest cent.) (3) If $90 is deposited quarterly and the credit union pays interest quarterly, the future value that Janet will have at the end of 5 years is $ (Round to the nearest cent.) b. Use your finding in part a to discuss the effect of more frequent deposits and compounding of interest on the future value of an annuity (Select from the drop-down menus.) The sooner a deposit is made the (1) - compounding and the (2) the funds will be available to eam interest and contribute to the future sum will be (1) Oloter Osooner (2) O smaller Olarger