Determine the effective annual rate

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Reference no: EM131815169

Changing compounding frequency. Using? annual, semiannual, and quarterly compounding? periods, (1) calculate the future value if $6,000 is deposited initially at 11?% annual interest for 6 years, and? (2) determine the effective annual rate

Annual Compounding

?(1) The future? value, FV Subscript nFVn?, is $. (Round to the nearest? cent.)

?(2) If the ?11% annual nominal rate is compounded? annually, the EAR is %. (Round to two decimal? places.)

Semiannual Compounding

?(1) The future? value, FV Subscript nFVn?, is $. (Round to the nearest? cent.)

?(2) If the 11% annual nominal rate is compounded? semiannually, the EAR is %. (Round to two decimal? places.)

Quarterly Compounding

?(1) The future? value, FV Subscript nFVn?, is $. (Round to the nearest? cent.)

?(2) If the 11?% annual nominal rate is compounded? quarterly, the EAR is ?%. (Round to two decimal? places.)

Reference no: EM131815169

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