Consider a dollar amount of $500 today, along with a nominal interest rate of 9.00%. You are interested in calculating the future value of this amount after 5 years. For all future value calculations, enter $500 (with the negative sign) for PV and O for PMT. When calculating the future value of $500, compounded annually for 5 years, you would enter a value of for N, a value of for I/Y Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded annually for 5 at the given nominal interest rate, yields a future value of approximately When calculating the future value of $500, compounded semi-annually (twice per year) for 5 years, you would enter a value of for N,a value of for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded semi-annually for 5 at the given nominal interest rate, yields a future value of When calculating the future value of $500, compounded quarterly for 5 years, you would enter a value of for N, a value of for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded quarterly for 5 at the given nominal interest rate, yields a future value of When calculating the future value of $500, compounded monthly for 5 years, you would enter a value of for N, a value of for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded monthly for 5 at the given nominal interest rate, yields a future value of Hint: Assume that there are 365 days in a year. When calculating the future value of $500, compounded daily for 5 years, you would enter a value of for N, a value of for I/. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded daily for 5 at the given nominal interest rate, yields a future value of Based on the results of your calculations, you can conclude that (all else equal) more frequent compounding leads to a future value. This is due to a periodic interest for more frequent compounding. Step 3: Practice: Future Value for Various Compounding Periods Now it's time for you to practice what you've learned. Consider a dollar amount of $500 today, along with a nominal interest rate of 3.00%. You are interested in calculating the future value of this amount after 4 years. For all future value calculations, enter $500 (with the negative sign) for PV and 0 for PMT. The future value of $500, compounded annually for 4 at the given nominal interest rate, is approximately Using your financial calculator, the future value of $500, compounded semi-annually for 4 at the given nominal interest rate, is approximately Using your financial calculator, the future value of $500, compounded quarterly for 4 at the given nominal interest rate, is approximately Using your financial calculator, the future value of $500, compounded monthly for 4 at the given nominal interest rate, is approximately Hint: Assume that there are 365 days in a year. Using your financial calculator, the future value of $500, compounded daily for 4 at the given nominal interest rate, is approximately