What is the effective annual rate

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Find the following values for a lump sum assuming annual compounding: (can you provide formulas for Excel?)

The present value of $500 invested at 8 percent for five years assuming quarterly compounding

The future value of $500 invested at 8 percent for five years assuming quarterly compounding   

What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly?

Reference no: EM131303761

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