.You plan to invest $2,000 in an individual retirement arrangement today at a nominal annual rate of 7%, which is expected to apply to all future years.

a. How much will you have in the account at the end of 11 years if interest is compounded (1) annually, (2) semiannually, and (3) daily (assume a 365-day year)?

b. What is the effective annual rate, EAR, for each compounding period in part a?