An engineering graduate starts a new job at $60,000 per year. Her investments are depostied at the end of the year into a mutual fund that earns a nominal interest rate of 3.9608% per year with semiannual compounding. How much money will be in the account immediately after she makes the last deposit if: 1. She makes $6800 annual deposits for the next 40 years; 2. She makes the $6800 deposits for the next 10 years, then stops all investments for the next 10 years, and then resumes doposits of $10800 per year for the next 20 years. Solution: - The nominal rate is given as APR= - The number of compounding periods per year is m= - The annual etfective interest rate ia = S; (ke0p2 decimals only) 1. She makes $6800 annual deposits for the next 40 years; - This is a single uniform series, 50F=$ 2. She makes the $6800 deposits for the next 10 yeass, then stops all investments for the next 10 years, and then resumes deposits of $10800 per year for the next 20 years. - This option has two separate parts: * Uniform series for the first 10 years, has an equivalent future worth at year 40 as Fi=$ - Unitorm series for the last 20 years, has an equivaient future worth at year 40 as F2=3 - Thus the total future amount is F=$