Question:
Changing compounding frequency - Using annual, semiannual, and monthly compounding periods for each of the following, (1) compute the future value if $3,000 is deposited initially, and (2) find the effective annual rate (EAR).
1. At 10% annual interest for 4 years.
2. At 14% annual interest for 5 years.
3. At 20% annual interest for 7 years.