Q5 (10 points) (10 points) Consider the following two investment strategies. Strategy 1: You deposit $100 at the beginning of every year into an account with 3.7% interest, compounded annually for a term of 10 years. Strategy 2: You deposit $D into an account today which has 2.7% interest, compounded continually. You let the money sit there for 5 years. After 5 years, you take all the money from the account and put it into another account which has 4.4% interest, compounded quarterly. (a) (3 points) What is the future value of the account in Strategy 1? (b) (3 points) What is the present value of the account in Strategy 1? (c) (4 points) What does the value D have to be so that Strategy 1 and Strategy 2 have the same future value after 10 years? Q5 (10 points) (10 points) Consider the following two investment strategies. Strategy 1: You deposit $100 at the beginning of every year into an account with 3.7% interest, compounded annually for a term of 10 years. Strategy 2: You deposit $D into an account today which has 2.7% interest, compounded continually. You let the money sit there for 5 years. After 5 years, you take all the money from the account and put it into another account which has 4.4% interest, compounded quarterly. (a) (3 points) What is the future value of the account in Strategy 1? (b) (3 points) What is the present value of the account in Strategy 1? (c) (4 points) What does the value D have to be so that Strategy 1 and Strategy 2 have the same future value after 10 years