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.

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.

Single Sum $1,000 $1,000 $1,000 $1,000 Compounding Frequency Annual Semiannual Quarterly Monthly Interest Factor Future Value Rate 12% 12% 12% 12% Time 2 years 2 years 2 years 2 years Single Sum $1,000 $1,000 $1,000 $1,000 Compounding Frequency Annual Semiannual Quarterly Monthly Interest Factor Present Value Rate 12% 12% 12% 12% Time 2 years 2 years 2 years 2 years

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