payments of $10 each, starting from today. What are the monthly IRR and the EAIR of the payment-over-time plan? 7. (Average compounding rate) WindyRoad is an investment company which has two mutual funds. The WindyRoad Dull Fund invests in boring corporate bonds, and its Lively Fund invests in "high-risk, high-return" companies. The returns for the two funds in the 5-year period 2011-2015 are given below. D 1 2 Year 3 2011 4 2012 5 2013 6 2014 7 2015 8 9 Average return B DULL FUND OR LIVELY FUND? Dull Fund Lively Fund return return 8.00% 11.50% 5.20% -14.50% 4.30% -20.00% 3.30% 42.50% 7.00% 14.00% 5.56% 6.70% AVERAGE(C3.07) a. Suppose you had invested $100 in each of the two funds at the begin- ning of 2011. How much would you have at the end of 2015! b. What was the effective annual interest rate (EAIR) paid by each of the funds over the 5-year period 2011-2015? c. Is there a conclusion you can draw from this example? (Advanced section) return d. Compute the annual continuous returns for Dull Fund and Lively Fund foreach of the years 20112015. What is the average continuous for each fund (reminder: value = value, -, *e )? e. Suppose you had invested $100 in each of the two funds at the begin- ning of 2011. Show that the total amount you would have in each fund (see part a) can be written as $100*e Notice that this makes computations much simpler