Find the future values of the following ordinary annuities FV of $600 paid each 6 months for 5 years at a nominal rate of 5 compounded semiannually Do not round intermediate calculations Round your answer to the nearest cent $ FV of $300 paid each 3 months for 5 years at a nominal rate of 5 compounded quarterly Do not round intermediate calculations Round your answer to the nearest cent $ These annuities receive the same amount of cash during the 5 year period 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 a these annuities receive the same amount of cash during the 5 year period 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 The annuity in part (a) is compounded less frequently, therefore, more interest is earned on previously earned interest The annuity in part (a) is compounded more frequently, therefore, more interest is earned on previously earned interest The annuity in part (b) is compounded less frequently, therefore, more interest is earned on previously earned interest The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously earned interest

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Posted on Sep 29, 2024

Find the future values of the following ordinary annuities:

FV of $600 paid each 6 months for 5 years at a nominal rate of 5% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.

$
FV of $300 paid each 3 months for 5 years at a nominal rate of 5% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.

$
These annuities receive the same amount of cash during the 5-year period 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?

these annuities receive the same amount of cash during the 5-year period 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?

The annuity in part (a) is compounded less frequently, therefore, more interest is earned on previously-earned interest.

The annuity in part (a) is compounded more frequently, therefore, more interest is earned on previously-earned interest.

The annuity in part (b) is compounded less frequently, therefore, more interest is earned on previously-earned interest.

The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously-earned interest.