1. All else equal, less frequent compounding results in which of the following?

   		larger number of periods per year
   		lower present values
   		lower effective annual rates
   		higher future values

10 points

QUESTION 6

1. You have an investment account that is starting with $1200. You would like the account to grow to $7500, and you can earn 6% interest annually. Assume you make no additional contributions to the account. Assume an annually compounded interest rate. How many years will you need to wait? (round to two decimals)

   		32.99 years
   		8.07 years
   		29.78 years
   		5.47 years
   		31.45 years