$1000 is deposited into an account at time t=0. The nominal interest rate is 8% compounded semiannually during the first year. An additional $118.40 is deposited into the account at time t=1 and the fund grows at a force of interest 100 2 t t during the second year.

1) Calculate the semiannual effective interest rate during the first year.

2) Calculate the account value at time t=1 before the additional $118.40 deposit.

3) Calculate the total account value at time t=2.