17

Find the future values of the following ordinary annuities: O a. FV of $500 paid each 6 months for 5 years at a nominal rate of 9% compounded semiannually. Do not round intermediate calculations. Round your answer to O the nearest cent. $ b. FV of $250 paid each 3 months for 5 years at a nominal rate of 9% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent $ 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? -Select- Chook My Work (9 remainine)