7. Jacky earns 3% p.a. effective from his savings account. He uses the exact version of the fisher equation and finds that he earns a negative real interest rate of -0.5% p.a. effective. Which of the following is the inflation rate (rounded to 0.01%) Jacky used in his calculation? (2 marks) A. 2.49% p.a. B. 3.50% p.a. C. 3.48% p.a. D. 3.52% p.a. 8. Kate has $5,200 in her savings account today. She earns interest at 4% p.a. effective. Kate will make a deposit of $2,000 in 2 years and a withdrawal of $1,300 in 4 years. Which of the following is the correct account balance in 6 years? (2 marks) A. $7,513.30 B. $6,381.44 C. $5,937.87 D. $6,133.63 I 9. Gloria is saving for a trip to Europe. The cost for the trip is $18,000. Gloria can deposit $590 maximum each month to her savings account earning interest at 6.6% p.a. compounded monthly. What is the minimum number of deposits Gloria should make for her to have enough money for the trip? (2 marks) A. 28 B. 29 C. 30 D. 31 10.Nancy is thinking about taking out a 30-year home loan. She will make equal monthly repayments including the principal and the interest (P&I) at the end of each month. Which one of the following statements is correct? (2 marks) A. The principal paid in the 10th year is higher than the principal paid in the 12th year. B. The interest paid in the 9th year is lower than the interest paid in the 12th year. C. The principal paid in month 360 is higher than the principal paid in each other month. D. The interest paid in the first month is lower than the interest paid in each other month. Page 4 of 14