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You are considering a 10 year invettment plan in which your tagget is $150,000. There are two ogtions ayalable for you) Opeion 1: Puting exactiy

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You are considering a 10 year invettment plan in which your tagget is $150,000. There are two ogtions ayalable for you) Opeion 1: Puting exactiy an equal ameunt of money into an inyestment fund at the end of each year for 10 wears with the fate of return of as, annually compecunding: from year 7 to the end of year 101 has not been def ined yet Requlest a) Caiculate the amount of money you should put into your imestment fund each year in Cption 1\} (4 marks) ANSWER: b) Compute the eflective annual interest rate (faA) in the fint 6 yean in Option 22 (2 marki) ANSWIA

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