Calculate the effective rate of interest per annum (j) equivalent to 6% pa compounded daily. Give your answer as a percentage per annum to 3 decimal places.

j = % pa

- 2 of 6 ID: FMTH.A.OA.PV.06.L

Calculate the amount of money that a person must have in a bank today (the beginning of the year) to be able to withdraw $700 at the end of each half-year for the next 8 years if the bank pays interest compounded half-yearly at j₂ = 10% pa. Give your answer in dollars and cents to the nearest cent.

Account balance = $