9. 10 eBook Future Value of an Annuity for Various Compounding Periods Find the future values of the following ordinary annuities. a. FV of $400 each 6 months for 7 years at a nominal rate of 8%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $200 each 3 months for 7 years at a nominal rate of 8%, compounded quarterly. Do not round intermed calculations. Round your answer to the nearest cent. $ c. 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 a over the 7 years. Why does this occur? The annuity in part (b) is compounded more frequently; therefore, more interest is earned on interest. Hide Feedback