Question 1 [10 Marks] Phuc owns a commercial building that will need a major renovation five years from now. The renovation cost at that time will be $1,000,000. Phuc has just started a savings account which earns interest of 12% p.a. compounded quarterly. He will make equal quarterly payments into the savings account. Each payment will be made at the end of each quarter, so the first payment will be made in one quarter's time. a. What is the annual effective rate in %? (round your answer to 2 decimal places) [2 marks] % b. What quarterly payment must Phuc make into his savings account to meet the renovation cost in five years' time? (omit commas in expressions like 10,000 etc., and round your answer to 2 decimal places) [3 marks] $ c. How much will there be in the savings account at the end of 2 years, including the payment that will be made in two years' time? (omit commas in expressions like 10,000, and round your answer to 2 decimal places) [2 marks] $ d. For two years, Phuc has been making the quarterly payments that you calculated in (b). Immediately after he makes a payment at the two-year mark, there is a change of interest rate to 8% p.a. compounded quarterly. At the same time extra faults are discovered in the property so the renovation cost at the end of year 5 is revised to be $1,500,000. How large are the quarterly payments that Phuc will have to make in order to meet this target? Assume that the new payments are still made at the end of each quarter. (omit commas in expressions like 10,000 etc., and round your answer to 2 decimal places) [3 marks] $