A savings account has an initial balance of 1.000. For the first 5 years the money a

cumulates at a force of interest of 8= 0.05. For the next 3 years the money accumulates at a

nominal rate of discount of 6% convertible semi- annually. For the last 2 years the money

accumulates at nominal annual interest rate convertible semi-annually.

At the end of 10 years the money has accumulated at a rate equivalent to a level annual effective

interest rate of 5%.

(1) Find the value of the account at 10.

(2) Find the equivalent nominal annual interest rate convertible semi-annually for the last 2

years?