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 3,4699% per year with semiannual compounding. How much money will be in the account immediately after she makes the last deposit if: 1. She makes $6600 annual deposits for the next 40 years; 2. She makes the $6600 deposits for the next 10 years, then stops all investments for the next 10 years, and then resumes deposits of $10600 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 effective interest rate ia = \%: (keep 2 decimals only) 1. She makes $6600 annual deposits for the next 40 years; - This is a single uniform series, so F=$ 2. She makes the $6600 deposits for the next 10 years, then stops all investments for the next 10 years, and then resumes deposits of $10600 per year for the next 20 years. - This option has two separate parts: then resumes deposits of $10600 per year for the next 20 years. - This option has two separate parts: : Uniform series for the first 10 years, has an equivalent future worth at year 40 as F1=$ : Uniform series for the last 20 years, has an equivalent future worth at year 40 as F2=$ - Thus the total future amount is F=S