Question 10 (i) An investor deposits 3,000 into a bank account earning interest of 6.5% p.a. effective. She immediately draws down income from the account, as a continuous payment stream, and such that the rate of payment in year r is 100r, r = 1,2,...,8. How much money is left in her account at the end of the eighth year? [4 marks) (ii) A 1-year forward contract exists on a stock. An investor enters the forward contract on 1st January 2021 when the stock had a price of 35. The stock pays an annual dividend of 5 with the next dividend payment being due on 1st September 2021. On 1st June the price of the stock is 40. Assuming a risk-free force of interest of 6% p.a., calculate the value of the forward contract to the holder on 1st June 2021. [4 marks) [Total 8 marks]