What would be the Future Value for problem f. above with monthly compounding and if total annual payment were the same but paid monthly. What will be the effective annual rate?

Future Value with monthly payments and compounding:					Orig. Inputs:	New Inputs:
		Inputs:	Periods per year		1
			Interest rate per period		5.42%
			Number of periods		5 years
			Payment per period		($398)
			Future Value =		$2,217.73
			Effective Annual Rate =		5.42%
Why is future value higher with monthly payments and compounding? Please give two reasons.
Reason 1:
Reason 2:
Why is the effective annual rate lower for monthly compounding compared to daily compounding?