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answer? a. FV of $200 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually. Do not round intermediate calculations.
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a. FV of $200 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. b. FV of $100 paid each 3 months for 5 years at a nominal rate of 12% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. 8 c. These annuities receive the same amount of cash during the 5-year penod 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? \begin{tabular}{|l} The annulty in part (a) is compounded more frequently, therefore, more interest is eamed on previousty eamed interest, v \\ \hline -Soledt- \end{tabular} Select- The nominat deposits into the anctulty in part (b) aie greater than the nominal depesits inte the annuity in part (0). The annuty in part (a) is coenpounded less fresuently; therefore, more interest is eamed on previousy -arned interest Step by Step Solution
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