question c

7. Problem 5.25 (Future Value of an Annuity) eBook Problem Walk-Through Find the future values of the following ordinary annulties: V of $400 paid each 6 months for 5 years at a nominal rate of 4% compounded semiannually. Do not round Intermediate calculations. Round your answer to the nearest cent. 5 2189.94 b. PV of $200 paid each 3 months for 5 years at a nominal rate of 4% compounded quarterly. Do not round Intermediate calculations. Round your answer to the nearest cent. $ 220190 c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? Select