2. Suppose that an investment promises to pay a nominal 12% annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded: semiannually, quarterly and bimonthly? (15p) 3. Mr. Hedwick expects to receive the cash inflows respectively: First Year: $10,000, Second Year: $15,000, Third Year: $8,000, Fourth Year: $12,000, Fifth Year: $16,000. Interest rate is 10%. Compute the total value at the end of the third year. (15p)