Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $5,000 is deposited initially, and (2) determine the effective annual rate (EAR). a. At 12% annual interest for 5 years. b. At 16% annual interest for 6 years. C. At 20% annual interest for 10 years. a. Annual Compounding (1) The future value, FWs SD (Round to the nearest cent) (2) If the 12% annual nominal rate is compounded annually, the EAR is (Round to two decimal places.) (1) The future value, FVn is s(Round to the nearest cent) (2) If the 12% annual nominal rate is compounded semiannually, the EAR is | |%. (Round to two decimal places.) (1) The future value, FV., is $. (Round to the nearest cent) (2) If the 12% annual nominal rate is compounded quarterly, the EAR is b. Annual Compounding (1) The future value, FVn, is (Round to the nearest cent) (2) If the 16% annual nominal rate is compounded annually, the EAR is 96 (Round to two decimal places.) 1%. (Round to two decimal places.)