Future Value for Various Compounding Periods

23. Problem 5.23 (Future Value for Various Compounding Periods) Find the inrint: to which $500 will grow under each of these conditions: a. 12% compounded annualy for 6 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. 12% compounded semiannually for 6 years, Do not round intermediate calculations. Round your answer to the nearest cent. 5 c. 12% compounded quarterly for 6 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ d. 12% compounded monthly for 6 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ e. 12% compounded dally for 6 years. Assume 365 -days in a year. Do not round intermediate calculations. Round your answer to the nearest cer 5 f. Why does the observed pattern of FV5 occur? Select- The future values increase because as compounding periods per year increase, interest is earned on interest less frequently. The future values decrease because as compounding periods per year increase, interest is earned on interest more frequently. The future values increase because as compounding periods per year increase, interest is eamed on interest more frequently. The future values increase because as compounding periods per year decrease, interest is earned on interest more frequently. The future values decrease because as compounding periods per year decrease, interest is earned on interest more frequently