1) The following table shows the annual effective interest rates being credited by an investment account, by calendar year of investment. The investment year method is applicable for the first 3 years, after which a portfolio rate is used:

Calendar Year of Investment 1990

1992 1994

Investment Yr. Rates

Calendar Year of Portfolio Rate 1993

1995 1997

Portfolio Rate

8%

6% 10%

i1

10% 8% 7%

i2 i3

10% t% (t - 2)% 12% 7% 10%

1991

12% 5% 10%

1994 (t - 1)%

1993

9% 11% 6%

1996 9%

Sophie makes an investment of 100 at the beginning of years 1990, 1991, and 1992. The total amount of interestcreditedbyherfundduringtheyear1993isequalto$28.40. Calculatet.

2) You are given the following information about the activity in two differen