Complete the tables and answer the questions. a. b. Summarize the effect of changing the compounding period

Question:

Complete the tables and answer the questions.
a.

b. Summarize the effect of changing the compounding period on the future value of a single sum. Explain why this effect appears reasonable.
c. What effect do you think that changing the compounding period of an annuity would have on its future value? Explain why you think this.
d.

e. Summarize the effect of changing the compounding period on the present value of a single sum. Explain why this effect appears reasonable.
f. What effect do you think that changing the compounding period of an annuity would have on its present value? Explain why you thinkthis.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...