Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $5,000 is deposited initially at 12% annual interest for 5 years, and (2) determine the effective annual rate (EAR).
Annual Compounding
(1) The future value, $FV_n$, is $ \boxed{\phantom{0000.00}} $. (Round to the nearest cent.)
(2) If the 12% annual nominal rate is compounded annually, the $EAR$ is $\boxed{\phantom{00.00}} \%$. (Round to two decimal places.)
Semiannual Compounding
(1) The future value, $FV_n$, is $ \boxed{\phantom{0000.00}} $. (Round to the nearest cent.)
(2) If the 12% annual nominal rate is compounded semiannually, the $EAR$ is $\boxed{\phantom{00.00}} \%$. (Round to two decimal places.)
Quarterly Compounding
(1) The future value, $FV_n$, is $ \boxed{\phantom{0000.00}} $. (Round to the nearest cent.)
(2) If the 12% annual nominal rate is compounded quarterly, the $EAR$ is $\boxed{\phantom{00.00}} \%$. (Round to two decimal places.)