Future value of an annuity Find the future values of the following ordinary annuities:

FV of $700 paid each 6 months for 5 years at a nominal rate of 4% compounded semiannually. Round your answer to the nearest cent.

FV of $350 paid each 3 months for 5 years at a nominal rate of 4% compounded quarterly. 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?