Question 1
Fine the future values of the following ordinary annuities:
a. FV of $400 each 6 months for 5 years at a nominal rate of 12%, compounded semiannually?
b. Fine of $200 each 3 months for 5 years at a nominal rate of 12%, compounded quarterly?
c. The annuties described in parts a and b have the same amount of money paid into them during the 5-year period and both earn interest at the same nominal rate, tye annunity in bart b earns $101.75 more that the one in part a over the 5 years. why does this occur?
