You plan to invest $2,000 in an individual retirement arrangement today at a nominal annual rate of 7%, which is expected to apply to all future years. a. How much will you have in the account at the end of 9 years if interest is compounded (1) annually, (2) semiannually, and (3) daily (assume a 365-day year)? b. What is the effective annual rate, EAR, for each compounding period in part a?

Your Answer: (Round to two decimal places.)

a. (1) The amount you will have in the account at the end of 9 years if interest is compounded annually is $ Blank 1. Fill in the blank, (2) The amount you will have in the account at the end of 9 years if interest is compounded semiannually is $ Blank 2. Fill in the blank, (3) The amount you will have in the account at the end of 9 years if interest is compounded daily is $ Blank 3. Fill in the blank, b. (1) If the 7% nominal rate is compounded annually, the EAR is Blank 4. Fill in the blank, %. (Round to two decimal places.) (2) If the 7% nominal rate is compounded semiannually, the EAR is Blank 5. Fill in the blank, %. (Round to two decimal places.) (3) If the 7% nominal rate is compounded daily, what is the EAR is Blank 6. Fill in the blank, %. (Round to two decimal places.)