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J. Will the future value be larger or smaller if we compound an initial amount more often than annually (e.g., semiannually, holding the stated (nominal)
J. Will the future value be larger or smaller if we compound an initial amount more often than annually (e.g., semiannually, holding the stated (nominal) rate constant)? Why? (3 points) ANSWER What is the EAR corresponding to a nominal rate of4% compounded semiannually? Compounded quarterly2 (3 points) (2) ANSWER: What is the future value of $200 after 3 years under 4% semiannual compounding? Quarterly compounding? (3 points) (3)
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