What is my annual effective rate for the entire 10 years


I. Suppose I deposit $150 into an account which for the first 5 years pays interest at a nominal rate of 3% compounded monthly, for the next 3 years pays interest at a nominal discount rate of 3% compounded quarterly and for the last two years has a constant force of interest of 3%.

a) How much will I have at the end?

b) What is my annual effective rate for the entire 10 years?

II. Suppose that I also deposit $25 each six months into the account described above.

c) How much money will I have at the end?

d) What is my annual effective rate for the entire 10 years?

Please show what work needs to be done to recieve those answers.

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Financial Management: What is my annual effective rate for the entire 10 years
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