Calculate same assuming semiannual and quarterly compounding

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Reference no: EM132002141

Assume you want to invest $125,000 and your investment pays 5% interest per year, annual compounding. What is the value of your investment in 2 years from now? Calculate the same assuming semiannual and quarterly compounding and compare your results. Why are there differences in future values? What is your actual annual interest? Please show both work and financial calculator inputs.

Reference no: EM132002141

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