(a) The current rate of interest quoted by a bank on its savings account is 10% per annum (per year), with interest credited annually. Smith opens an account with a deposit of $,1000. Assuming that there are no transactions on the account other than the annual crediting of interest, determine the account balance just after interest is credited at the end of 6 years. [4] (b) For each of the following scenarios, find the present value of $500 to be paid at the end of 40 months. Apply the simple-interest method for the remaining fraction of the conversion period if necessary. Round your answer to the nearest cent. [5] (i) The nominal discount rate is 8% compounded every 3 months. (ii) The nominal interest rate is 4% compounded every 4 months. [5]