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Future Value of an Annuity Assignment | Homework For You

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May 25th, 2020

13. Problem 5.25 (Future Value of an Annuity) eBook Find the future values of the following ordinary annuities:Homework For You

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a. FV of $400 paid each 6 months for 5 years at a nominal rate of 15% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.

b. FV of $200 paid each 3 months for 5 years at a nominal rate of 15% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.

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?Get Finance homework help today

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