P$539$ Compounding frequency, time value, and effective annual rates For each of the

cases in the table below:

a$.$ Calculate the future value at the end of the specified deposit period.

b$.$ Determine the effective annual rate, EAR.

c$.$ Compare the nominal annual rate, r$,$ to the effective annual rate, EAR. What relationship exists between compounding frequency and the nominal and effective annual ratesCase

Amount of

initial deposit

Nominal

annual rate, r

Compounding

frequency, m

$($times$/$year$)$

Deposit

period

$($years$)$

A $ $2,5006\%25$

B $50,0001263$

C $1,0005110$

D $20,0001646$