Earn interest at the same nominal rate

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Reference no: EM131834999

Find the future values of the following ordinary annuities: FV of $700 paid each 6 months for 5 years at a nominal rate of 14% compounded semiannually. Round your answer to the nearest cent. $ FV of $350 paid each 3 months for 5 years at a nominal rate of 14% compounded quarterly. 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?

Reference no: EM131834999

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