Annuities and compounding Personal Finance Problem Janet Boyle intends to deposit $260 per year in a credit union for the next 6 years, and the credit union pays an annual interest rate of 10% a. Determine the future value that Janet will have in 6 years, given that end of period deposits are made and no interest is withdrawn, if (1) $260 is deposited annually and the credit union pays interest annually (2) 5130 is deposited semiannually and the credit union pays interest semiannually (3) 565 is deposited quarterly and the credit union pays interest quarterly b. What is the effective annual rate (EAR) for (1) semiannual compounding and 2 quarterly compounding? c. 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) 15260 is deposited annually and the credit union pays interest annually, the future value that Janet will have at the end of 6 years is 50 (Round to the nearest cent.) (2) 1 5130 is deposited semiannually and the credit union pays interest semiannually, the future value that Janet will have at the end of 6 years is 5 (Round to the nearest cent) (3) 1565 is deposited quarterly and the credit union pays interest quarterly, the future value that Janet will have at the end of 6 years is $). (Round to the nearest cent) b. The EAR for (1) semiannual compounding is percent and (2) quarterly compounding is percent. (Round to two decimals)