Question: Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for

Changing compounding frequencyUsing annual, semiannual, and quarterly compounding periods, (1) calculate the future value if

$6,000 is deposited initially at 11% annual interest for 5 years, and (2) determine the effective annual rate (EAR).

1. For quarterly compounding, the future value, is _________$. (Round to the nearest cent).

2. If the 11% annual nominal rate is compounded quarterly, the EAR is _________%. Round to two decimal places.

Please use an Excel Spreadsheet with formula to show the computations and results).

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