Question: 12 marks) Kobe is saving for retirement. The first year he saves $3,000, and every year he saves 8.050% more than the year before. The

12 marks) Kobe is saving for retirement. The first year he saves $3,000, and every year he saves 8.050% more than the year before. The current interest rate is 9.500% compounded semi-annually.

a) What is the effective annual interest rate i?

b) How much money has Kobe saved after 5 years?

c) How many years until he has saved at least $172,000?

d) (OPTIONAL! 5 bonus marks) If the effective annual interest rate i changes to exactly match the growth rate r = 8.050%, how much money will he have saved after 11 years?

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