3. Chandra has an account that pays the values indicated on the cash flow diagram below. If the interest rate is 4% nominal annual, compounded monthly, calculate the present value of this investment. (7 marks) $5000 $4000 $6000 1 2 3 4. An account pays 4.5% nominal annual interest compounded monthly. Bill has an investment in this account that pays dividends at the end of each period, as shown below. Using a 2 year effective interest rate, calculate the present value of this investment. (5 marks) $4200 $6400 $8500 5 1 2 3 4 6