Janet Boyle intends to deposit $220 per year in a credit union for the next 5 years, and the credit union pays an annual interest rate of 7%.

a. Determine the future value that Janet will have in 5 years, given thatend-of-period deposits are made and no interest iswithdrawn, if:

(1) $220 is deposited annually and the credit union pays interest annually.

(2) $110 is deposited semiannually and the credit union pays interest semiannually.

(3) $55 is deposited quarterly and the credit union pays interest quarterly.

b. Use the finding in part a to discuss the effect of more frequent deposits and compounding of interest on the future value of an annuity.