Problem Walk-Through Find the future values of the following ordinary annuities: a. FV of $700 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $350 paid each 3 months for 5 years at a nominal rate of 12% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. 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? JA- do E eBook Allison and Leslie, who are twins, just received $35,000 each for their 27th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 5% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 20% per year in the fund's relatively short history a. If the two women's funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places. Allison: years Lesle: years b. How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Lesile, assuming their expected returns are realized? Do not round intermediate calculations. Round your answer to the nearest cent $ e. Is it rational or irrational for Allison to invest in the bond fund rather than in stocks? A-Z 1. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Leslie does. It. High expected returns in the market are almost always accompanied by less risk. We couldn't say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leslie does A III. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leslie does TV. High expected returns in the market are almost always accompanied by less risk. We couldn't say whether Alison is rational or irrational, just that she seems to have less tolerance for risk than Leslie does V. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Alison is rational or irrational, just that she seems to have about the same tolerance for risk than Lesle does Select 3 19. Problem 5.33 (FV of Uneven Cash Flow) ellook You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $4,000 at the end of the first year, and you anticipate that your annual savings will increase by 10% annually thereafter. Your expected annual return is 11%. How much will you have for a down payment at the end of Year 37 Do not round intermediate calculations. Round your answer to the nearest cent ols roductory Grade it Now Save & Continue Tips Tips OU