Question 2 (Total of 16 marks)

Daniel and Samuel were twin brothers who were left a will inheritance of $2,000 each. Daniel invested his money for 3 years, at a simple interest rate of 7.8%. However, Samuel invested his money in an account for 3 years, at an annual interest rate of 8% compounded semi-annually. At the end of 3 years, they both agreed to pool their respective accumulated amounts into one account for another 2 years.The annual interest rate of this account is 5% compounded quarterly.

(a)(10 marks) How much accumulated value did each twin have after 3 years?

(b)(6 marks) What was the accumulated value of their pooled money at the end of the 5-year period?