Find the future values of the ordinary annuities

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Question - FUTURE VALUE OF AN ANNUITY - Find the future values of the following ordinary annuities:

FV of $400 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually.

FV of $200 paid each 3 months for 5 years at a nominal rate of 12% compounded quarterly.

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: EM132878610

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