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SHOW ALL WORK. NO CREDIT FOR LUCKY ANSWERS. Adriene Ande 1 (12%) A bank credits interest on deposits quarterly at rate 2% per q nominal interest rate for interest compounded quarterly? Find the and annual effective discount rate. uarter. What is the annual annual effective rate of interest 2. (15%) The amount of interest earned for one year when X is invested is $108. The amount of discount earned when an investment grows to value X at the end of one year is $100. Find X,i, and d. 3, (10%) Carl puts 10,000 into a bank account that pays an annual effective interest rate of 4% for ten years. If a withdrawal is made during the first five and a half years, a penalty of 5% of the withdrawal amount is made. Carl withdraws K at the end of each of years 4, 5, 6, 7. The balance in the account at the end of year 10 is 10,000. Calculate K. 4, (13%) A deposit of $8,000 is made into a fund which pays an annual nominal rate of discount of 7.25% convertible bimonthly. Four years later, x is deposited into another fund which pays an annual nominal rate of interest of of 8.53% convertible quarterly. Ten years after the first deposit was made the balance in the first fund is half the balance of the second fund. Calculate r. 5. (15%) You are given: . A payment of z at time 2 plus a payment of y at time 6 is equivalent to a payment of r +3 at time 4. + 2000. . The annual effective rate of interest is 3.5%