Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if 8,000 is deposited initially at 9% annual interest for 7 years, and (2) determine the effective annual rate (EAR).

Annual Compounding

(1) The future value, FVn, is $ (Round to the nearest cent.)

(2) If the 9% annual nominal rate is compounded annually, the EAR is %. (Round to two decimal places.)

Semiannual Compounding

(1) The future value, FVn, is $ (Round to the nearest cent.)

(2) If the 9% annual nominal rate is compounded? semiannually, the EAR is %. (Round to two decimal places.)

Quarterly Compounding

(1) The future value, FVn, is $ (Round to the nearest cent.)

(2) If the 9% annual nominal rate is compounded quarterly, the EAR is %. (Round to two decimal places.)