Future Value of an Annuity Find the future values of the following ordinary annuities:

a. FV of $400 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually.

b. FV of $200 paid each 3 months for 5 years at an interest rate of 12% compounded quarterly.

c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same rate, yet the annuity in part b ends up larger the one in part a. Why does this occur?