Question: h. (1) Will the future value be larger or smallerif we compound an initial amount more often than annualy for example, every 6 months, or
h. (1) Will the future value be larger or smallerif we compound an initial amount more often than annualy for example, every 6 months, or semiannually holding the stated interest rate constant? Why? (2) Deline the stated, or quoted, or simple, rate, (SMIFLE), annual percentage rate (APR), the periodic rate (PER), and the effective annual rate (rEAR). (3) what is the effective annual rate for a simple rate of 10%, compounded semiannually? Compounded quarterly? Compounded daily? (4) What is the future value of $100 after three years under 10%semiannual compounding? Quarterly compounding? Will the effective annual rate ever be equal to the simple (quoted) rate? Explain. (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is i. j. 10%, compounded semiannually? 2 100 100 100 (2) What is the PV of the same stream
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