Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $5,000 is deposited initially at 8% annual interest for 5 years, and (2) determine the effective annual rate (EAR)

Annual Compounding

1- The future value, FVn, is $____

2- If the 8% annual nominal rate is compounded annually, the EAR is ____%

Semiannual Compounding

1- The future value, FVn is $____

2-If the 8% annual nominal rate is compounded semiannually, the EAR is ____%

Quarterly Compounding

1- The future value, FVn is $____

2-If the 8% annual nominal rate is compounded quarterly, the EAR is ___%