You are considering investing $150,000, in a pool of stocks and bonds. Your broker says that you will get nominal rate of 14% per year, compounded quarterly.

a) [6pt] Calculate the periodic rate and the effective annual rate.

b) [9pt] How much money will accumulate in the account at the end of 6 years?

c) [10pt] Alternatively, a bank offers you 16% per year simple interest for the same duration with part b). Calculate how much money you will accumulate if you invest your money on this bank. Should you invest on the pool of stocks and bonds or the bank?