$5000 compounded annually at 6% for 5 yearso $5000 compounded semiannually at 6% for 5 yearso $5000 compounded quarterly at 6% for 5 yearso $5000 compounded annually at 6% for 6 yearsAnswer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?Calculate the present value of the following:o $7000 in 5 years at an annual discount rate of 6%o $7000 in 5 years at a semiannual discount rate of 6%o $7000 in 5 years at a quarterly discount rate of 6%o $7000 in 6 years at an annual discount rate of 6%Answer the following: What conclusions can be drawn about the frequency of the discounting interval? What conclusions can be drawn about the length of time until the receipt of that value? Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5000 per year for 5 years starting one year from today. Contract B pays $5000 per year for 5 years starting today. The discount rate for each is 6%. Which annuity contract would you choose for your retirement? Why?