For questions 1 - 4 use a required nominal annual return: I jus finished this homework, and i wanted to know wheter my answers were correct or no?			5.00%
1. Consider a 1-year CD.		Principal value	$5,000.00
What is the future value of the CD in 1 year AND what is the effective annual rate?
		Future Value	EFF
a. annual compounding?		$5,250.00	5.00%
b. semi-annual compounding?		$5,253.13	5.06%
c. quarterly compounding?		$5,254.73	5.09%
d. monthly compounding?		$5,255.81	5.12%
e. daily compounding?		$5,256.34	5.13%
2. Rework problem #1 assuming a 5-year CD with $5000 principal.
		Future Value	EFF
a. annual compounding?		$6,381.41	5.10%
b. semi-annual compounding?		$6,400.42	5.11%
c. quarterly compounding?		$6,410.19	5.12%
d. monthly compounding?		$6,416.79	5.12%
e. daily compounding?		$6,420.02	5.13%
3. Assume you want to invest $1000 at the END of every year for the next 5 years.
			Future Value
a. What is the future value in year 5, if interest is compounded annually?			$5,536.79
b. What is the future value in year 5 if interest is compounded semiannually?			$12,645.03
4. Rework question 3, assuming payments are made at the BEGINNING of each period.
			Future Value
a. What is the future value in year 5, if interest is compounded annually?			$5,819.22
b. What is the future value in year 5 if interest is compounded semiannually?			$13,291.70