Question: A) Annual Compounding (1) The future value is $ (blank) (Round to the nearest cent.) (2) If the 8% annual nominal rate is compounded annually,

A) Annual Compounding

(1) The future value is $ (blank) (Round to the nearest cent.)

(2) If the 8% annual nominal rate is compounded annually, the EAR is (blank) % (Round to two decimal places.)

B) Semiannual Compounding

(1) The future value is $ (blank) (Round to the nearest cent.)

(2) If the 8% annual nominal rate is compounded semiannually, the EAR is (blank) % (Round to two decimal places.)

C) Quarterly Compounding

(1) The future value is $ (blank) (Round to the nearest cent.)

(2) If the 8% annual nominal rate is compounded quarterly, the EAR is (blank) % (Round to two decimal places.)

Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $8,000 is deposited initially at 8% annual nterest for 7 years, and (2) determine the effective annual rate (EAR)

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