Overview
I'm working on a mathematics multi-part question and need an explanation and answer to help me learn.
- FV of $700 paid each 6 months for 5 years at a nominal rate of 5% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.$
- FV of $350 paid each 3 months for 5 years at a nominal rate of 5% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.$
- 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?