Find the future values of ordinary annuities

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Reference no: EM131989724

FUTURE VALUE OF AN ANNUITY

Find the future values of the following ordinary annuities:

FV of $600 paid each 6 months for 5 years at a nominal rate of 10% compounded semiannually. Round your answer to the nearest cent.

FV of $300 paid each 3 months for 5 years at a nominal rate of 10% 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: EM131989724

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