Ten years ago you invested $6500 in a mortgage fund. The fund earned 3% compounded semi-annually for the first 3 years. You then moved the money to a dividend fund where you earned 4% compounded quarterly for the next 5 years.

a. How much is your investment worth at the end of the first 8 years?

b. You then moved all your money into mutual funds. Over the next two years, the mutual fund went up so much that you managed to achieve an average rate of return of 6% per year, compounded annually, over the entire 10 years the money was invested. What rate of return, compounded annually, did you earn on the mutual fund over the last two years?