Q5) (15 marks)

Selima deposits $7000 ( t = 0 years) in an account paying r(2) = 6.00%.At the end of 3 years (t = 3 years) she adds another $8000 to her account and the interest rate changes to r(2) = X%. After another 4 years ( t = 7 years) she adds another $9000 to her account and the interest changes to r(2) = 3.00%. At the end of 10 years, she has $31634.50 in her account.

a) How much money does she have in her account at t = 3 years just before she makes her deposit?

b) How much money does she have in her account after 7 years, just after she makes her deposit?

c) What is X%?