For each of the following cases, indicate (a) to what interest rate columns and (b) to what number of periods you would refer in looking up the future value factor. (1) In Table 1 (future value of 1):
|
Annual |
Number of |
Compounded |
|
|
Case A |
6% |
3 |
Annually |
|
Case B |
8% |
4 |
Semiannually |
(2) In Table 2 (future value of an annuity of 1):
|
Annual |
Number of |
Compounded |
|
|
Case A |
5% |
8 |
Annually |
|
Case B |
65 |
6 |
Semiannually |