Pates Non-level interest Example 2.4. Suppose that in Example 2.1 the minimal interest rate earned on the account changes to 7.5% (still compounded monthly) as of January 1, 2013. What is the accumulated value of the account on December 31, 2018? Dich Separate the full term into separate time intervals over the interest rate. is constant : Dec 31, 2012 97 8 + 5x12 = 68 : 0 May 31, 2007 payments. Jan 1, 2013 Dec 31, 2018 # 75% 6x12 = 72 30 S 2 Dec 31, 2012 on 0.09 $2.648.50 (): Accumulated value : Accumulated value on Dec 31, 2018 30 S10025 + 2,648.50 (1.00621) 72 $6,865.22 # 97, 68 payments 7.5%, 72 payments 31, Dec 31, 2078 2012 30587009 305 1510:42 (1+0.07692 + 3057025 $6,865.22 May 31, 2007 Jan 1, 2073 J 1 payments Question 3 (16 marks) You place $100 into a fund at the end of each month for 3 years. The annual nominal interest rate is 2% in the first year, 2.5% in the second year, and 3% in the third year. (a) Using a spreadsheet programme (Excel, WPS or the likes), find the interest and accumulated amount at each compounding period over the three years. Display your results in a table as the one shown below: Month Deposit Interest Accumulated Amount 1 100 100 ? 2 100 ? : : You do not need to include screenshots of your answer here. Submit your spreadsheet. [8] (b) Refer to Example 2.4 of Chapter 2. Use a similar process to find the accumulated value of the fund at the end of the third year. Round your answer to the nearest cent. [8] Note: there may be slight discrepancies between the answers in parts (a) and (b) due to rounding