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2 (a) Consider a banking investment paid on a semi-annual basis (twice a year). The compounding of the interest is pursued on a weekly basis

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2 (a) Consider a banking investment paid on a semi-annual basis (twice a year). The compounding of the interest is pursued on a weekly basis (52 weeks per year). If the nominal interest rate for the compounding interest scheme is 7%, determine the etfective weekly interest rate and the FINAL WORTH of the cash flow proiect (after 5 years). Assume the Annuity at every payment period is 1000 Riyals. (5 points) where a COMPOUNDED return is (b) Consider if the scheme is conducted on a CONTINOUS COMPOUNDING AND CONTINOUS FLOW basis with 12 interest periods, annually. Assuming, nominal interest rate of 7 % and monthly payments (1000 Riyals), determine the FINAL WORTH of the cash flow after a period of 32 months. (5 points)

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