Using annual semiannual and quarterly compounding periods, Finance Basics

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Using annual semiannual and quarterly compounding periods

Using annual, semiannual, and quarterly compounding periods for each of the following, (1) calculate the future value if $5,000 is deposited initially, and (2) determine the effective annual rate (EAR).

a. At 12% annual interest for 5 years.

b. At 16% annual interest for 6 years.

c. At 20% annual interest for 10 years.

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Finance Basics: Using annual semiannual and quarterly compounding periods

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Finance Basics: Using annual semiannual and quarterly compounding periods

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