Problem 4 13 Ha rlts You started your rst job on June 1, 2022. As a nance major in college, you understand the importance of saving for retirement early. You have decided to save $20G at the beginning of every month towards retirement. a} Given an interest rate of 12% compounded monthly, compute the value of your savings after 2D years? 5 Marks b} Compute the effective annual rate on this account. 3 Marks c} Assuming that you stopped your monthly savings after 20 years, but left the accumulated balance {from part {a} above) in the account for another 15 years. earning 12% interest annually. Compute the value of this account in 15 years. 3 Marks d} On retirement, you plan to invest your savings {from part {c} above} in an account that pays 3% annually; if you hope to live for 21] years after retirement, how much would you be able to withdraw from this account to assist with your retirement expenses? ? Marks 1. Define the Effective Annual Rate (EAR) and explain its purpose. 4 Marks 2. List the two (2) important relationships pertaining to present value. 3 Marks 3. Define an annuity and distinguish between and ordinary annuity and an annuity due. 3 Marks