FV of $800 each 6 months for 9 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.
Future Value of an Annuity for Various Compounding Periods
Find the future values of the following ordinary annuities.
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FV of $800 each 6 months for 9 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.
$
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FV of $400 each 3 months for 9 years at a nominal rate of 12%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.
$
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The annuities described in parts a and b have the same amount of money paid into them during the 9-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 9 years. Why does this occur?
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