In the future value of an annuity calculation, what variables must be adjusted if payments...
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In the future value of an annuity calculation, what variables must be adjusted if payments are made quarterly?
a) The N, or number of periods must be changed to 4 to reflect 4 payments per year, AND the interest rate must be multiplied by 4 to appropriately adjust the periods compounded.
b) The N, or number of periods must be changed to 4, to reflect 4 payments per year, AND the interest rate must be divided by 4 to appropriately adjust the compounding.
c) The N, or number of periods must be changed to 3 to reflect 3 payments per year, AND the interest rate must be multiplied by 3 to appropriately adjust the periods compounded.
d) The N, or number of periods must be changed to 3 to reflect 3 payments per year, AND the interest rate must be divided by 3 to appropriately adjust the periods compounded.
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