5 23 FUTURE VALUE FOR VARIOUS COMPOUNDING PERIODS Find the amount to which $800 will grow under each of these conditions 10 compounded annually for 10 years Do not round intermediate calculations Round your answer to the nearest cent $ 10 compounded semiannually for 10 years Do not round intermediate calculations Round your answer to the nearest cent $ 10 compounded quarterly for 10 years Do not round intermediate calculations Round your answer to the nearest cent $ 10 compounded monthly for 10 years Do not round intermediate calculations Round your answer to the nearest cent $ 10 compounded daily for 10 years Do not round intermediate calculations Round your answer to the nearest cent $ Why does the observed pattern of FVs occur Select A The future values increase because as compounding periods per year increase, interest is earned on interest less frequently B The future values decrease because as compounding periods per year increase, interest is earned on interest more frequently C The future values increase because as compounding periods per year increase, interest is earned on interest more frequently D The future values increase because as compounding periods per year decrease, interest is earned on interest more frequently E The future values decrease because as compounding periods per year decrease, interest is earned on interest more frequently

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FUTURE VALUE FOR VARIOUS COMPOUNDING PERIODS

Find the amount to which $800 will grow under each of these conditions:

10% compounded annually for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
10% compounded semiannually for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
10% compounded quarterly for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
10% compounded monthly for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
10% compounded daily for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. $
Why does the observed pattern of FVs occur? -Select- A.The future values increase because as compounding periods per year increase, interest is earned on interest less frequently. B.The future values decrease because as compounding periods per year increase, interest is earned on interest more frequently. C.The future values increase because as compounding periods per year increase, interest is earned on interest more frequently. D.The future values increase because as compounding periods per year decrease, interest is earned on interest more frequently. E.The future values decrease because as compounding periods per year decrease, interest is earned on interest more frequently.