2. Effective rates (i) Consider another investment scheme that compounds once, at the end of the year, with annual interest rate r.. What value of ro, must be selected in order for a principal P, invested on January Ist, to have the same value at the end of the year as an investment of P in Scheme RST? (ii) Next consider an investment scheme that compounds continuously with interest rate re. What value of r. must be selected in order for a principal P, invested on January Ist, to have the same value at the end of the year as an investment of P in the Scheme RST? (m) How does r. compare to re? Le. does it necessarily hold that fa > Fe, of Fa & re? Justify your answer with an argument based on explicit mathematical inequalities, or by a written argument that invokes financial principles. You do not need to present both arguments