2. (10 points) BoxCo is hiring a new employee named Fred, to whom they will pay a salary of$6 000per month, at the end of each month worked. Fred starts working on Jan 1, 2021. To finance Fredssalary, BoxCo deposits a lump sum of money into a bank account on Jan 1, 2021 that accumulates interest at a rate of 12% per year, compounded continuously.

(a) What is the effective annual interest rate for BoxCos bank account? Express your answer as a percentage and round to the nearest hundredth of a percent.

Answer: The effective annual interest rate is _________ %.

(b) How much does BoxCo need to invest today to ensure that they can keep paying Freds salary for a total of 10 years? (Assume that his salary remains constant during this time period.) Show your reasoning carefully. Round your final answer to the nearest cent.

Answer: BoxCo must invest ________ dollars today.

(c) When negotiating his contract, Fred asks if BoxCo would consider raising his salary by$5 each month, so that he would make$6 000 this month,$6 005 next month,$6 010 the month after that, and so on. How much additional money would BoxCo need to deposit into their account today in order to accommodate these raises? Colour in the circle for ALL correct answers.

11! 114 1 10 5je -0Mili+l} 0013-j - l'c):0 (ijc = 001 ; + l0 0):(j-l'c-01; O None of the above