Question: Problem 28-18 Future Value of an Annuity for Various Compounding periods Find the future values of the following ordinary annuities: a. FV of $200 paid
Problem 28-18 Future Value of an Annuity for Various Compounding periods Find the future values of the following ordinary annuities: a. FV of $200 paid each 6 months for 6 years at a nominal rate of 8%, compounded semiannually. Round your answer to the nearest cent. $ b. FV of $100 paid each 3 months for 6 years at a nominal ralx of 8%, compounded quarterly, Round your answer to the nearest cent. $ C. The annuities described in parts a and b have the same total amount of money paid into them during the 6-year period, and both eam interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 6 years. Why does this occur? -Select
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