You plan to invest $2,100 in an individual retirement arrangement (IRA) today at a nominal annual rate of 9%, which is expected to apply to all future years.

a. (1) The amount you will have in the account at the end of 11 years if interest is compounded annually is $. ? (Round to two decimal places.)

(2) The amount you will have in the account at the end of 11 years if interest is compounded semiannually is $. ? (Round to two decimal places.)

(3) The amount you will have in the account at the end of 11 years if interest is compounded daily is $. ? (Round to two decimal places.)

(4) The amount you will have in the account at the end of 11 years if interest is compounded continuously is $. ? (Round to two decimal places.)

b. (1) If the 9% nominal rate is compounded annually, the EAR is %. ? (Round to two decimal places.)

(2) If the 9% nominal rate is compounded semiannually, the EAR is %. ? (Round to two decimal places.)

(3) If the 9% nominal rate is compounded daily, what is the EAR is %. ? (Round to two decimal places.)

(4) If the 9% nominal rate is compounded continuously, what is the EAR is %. ? (Round to two decimal places.)

c. If interest is compounded continuously rather than annually, at the end of 11 years your IRA balance will be $ ? greater. (Round to two decimal places.)

d. The more frequent the compounding the (enter either 'larger' or 'smaller') the future value. This result is shown in part a by the fact that the future value becomes (enter either 'larger' or 'smaller') as the compounding period moves from annually to continuously. Since the future value is (enter either 'larger' or 'smaller') for a given fixed amount invested, the effective return also (enter either 'increases' or 'decreases') directly with the frequency of compounding.