Question: Future value for various compounding periods Find the amount to which $700 will grow under each of these conditions: A) 4% compounded annually for 8

Future value for various compounding periods

Find the amount to which $700 will grow under each of these conditions:

A) 4% compounded annually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $_______

B) 4% compounded semiannually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $________

C) 4% compounded quarterly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $________

D) 4% compounded monthly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $_______

E) 4% compounded daily for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent. $________

Why does the observed pattern of FVs occur?

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