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2. Suppose a(t) = 0.015 (1-2) + 0.35 1 + 1.12. Calculate values of aft) and the effective rate of interest, i, for integer values

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2. Suppose a(t) = 0.015 (1-2) + 0.35 1 + 1.12. Calculate values of aft) and the effective rate of interest, i, for integer values of 1 from 0 to 50 (no need for an effective rate at 1 = 0). Then graph the values of the effective rates of interest (see Excel graphing helpful hints). Round the alt) values to 3 decimal points and round the interest rates to 2 decimal points in percentage form. (4 + 3 = 7 marks) 2. Suppose a(t) = 0.015 (1-2) + 0.35 1 + 1.12. Calculate values of aft) and the effective rate of interest, i, for integer values of 1 from 0 to 50 (no need for an effective rate at 1 = 0). Then graph the values of the effective rates of interest (see Excel graphing helpful hints). Round the alt) values to 3 decimal points and round the interest rates to 2 decimal points in percentage form. (4 + 3 = 7 marks)

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