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

$4,000 is deposited initially at 8% annual interest for 8 years, and (2) determine the effective annual rate (EAR). See the attached document for additional instructions.

Use an Excel Spreadsheet to compute your results.

Changing compounding frequencyUsing annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $4,000 is deposited initially at 8% annual interest for 8 years, and (2) determine the effective annual rate (EAR). When solving for the future value of a single cash flow using an Excel spreadsheet, you will need to enter the values of Rate, Nper, Pv, Pmt, and Type into the future value function. (Please use an Excel Spreadsheet with formula to show the computations and results). Annual Compounding (1) To find the future value for a single deposit (present value) made today, the initial deposit is compounded at the annual interest rate for the number of years. Fill in the missing blanks. (a) The number of investment years is ___________years. (b) The annual interest rate, is ______%. (Type a whole percentage) (c)The deposit made today, PV, is $______. (Round to the nearest dollar). (d) For annual compounding, the future value, FV is _________$. (Round to the nearest dollar) (2) To find the effective annual rate (EAR) for a nominal annual interest rate, the interest rate per period is compounded for the number of periods in 1 year to obtain the annual rate that is actually earned on a deposit. (Please use an Excel Spreadsheet with formula to show the computations and results). If the 8% annual nominal rate is compounded annually, the EAR is _________%. (Round to two decimal places) The number of investment years is ________ years. (Round to the nearest whole number) The annual interest rate is _________%. Type a whole percentage. The deposit made today, is ________$. Round to the nearest dollar. For annual compounding, the future value, is ____________$. (Round to the nearest cent). Semiannual Compounding (Please use an Excel Spreadsheet with formula to show the computations and results). (1) Follow the steps above to find the future value for a single deposit (present value) made today, where the initial deposit is compounded semiannually. For semiannual compounding, the number of compounding periods in 1 year, is __________periods. (Type a whole number) For semiannual compounding, the future value, is __________$. (Round to the nearest cent). (2) If the 8% annual nominal rate is compounded semiannually, the EAR is _________%. (Round to two decimal places). Quarterly Compounding (Please use an Excel Spreadsheet with formula to show the computations and results). (1)Follow the steps above to find the future value for a single deposit (present value) made today, where the initial deposit is compounded quarterly. For quarterly compounding, the number of compounding periods in 1 year, is _________ periods. (Type a whole number) For quarterly compounding, the future value, is _________$. (Round to the nearest cent). (2) If the 8% annual nominal rate is compounded quarterly, the EAR is ________%. (Round to two decimal points)