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Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $4,000 is deposited initially at 12% annual interest for
Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $4,000 is deposited initially at 12% annual interest for 4 years, and (2) determine the effective annual rate (EAR). Annual Compounding (1) The future value, FV, is $. (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded annually, the EAR is % (Round to two decimal places.) Semiannual Compounding (1) The future value, FV, is . (Round to the nearest cont.) (2) of the 12% annual nominal rate is compounded semiannually, the EAR is (%. (Round to two decimal places.) Quarterly Compounding (1) The future value, FV, is $. (Round to the nearest cent.) (1) The future value, FV, is $. (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded annually, the EAR is %. (Round to two decimal places.) Semiannual Compounding (1) The future value, FV.,, is $. (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded semiannually, the EAR is %. (Round to two decimal places.) Quarterly Compounding (1) The future value, FV, is $. (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded quarterly, the EAR is %. (Round to two decimal places.)
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