1. A bank offers an annual rate of 11% with monthly compounding if you invest $25,000 for 5 years. Calculate the amount of money in the account by the end of the 5 years? Calculate the annual rate which is equivalent to the bank's offer rate, if this rate is with: 1.2.1 annual compounding 1.2.2 continuous compounding. 2. The annual rate of return with continuous compounding is 11%. Calculate the equivalent annual rate of return with: Daily compounding. (m=365). 3. A farmer hedges his expected crop of 100,000 bushels of Corn with a hedge ratio: h=1. NF=5,000 bushels. Harvest is NOV, so the farmer uses the DEC corn futures with: F0,0C=$3.50/ Bushel. 3.1 Use a time table to describe the hedge and its result in NOV given: SNov=$2.95/ bushel and FNOV,DEC=$3.00/ bushel. Calculate the selling price. 3.2 Using the same hedge describe its result if NOV: SNOV=$3.95/ bushel and FNOVoEC=$4.40/ bushel. Calculate the selling price