Question: a. It is now January 1. You plan to make five deposits of $100 each, one every 6 months, with the first payment being made

a. It is now January 1. You plan to make five deposits of $100 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 8% but uses semiannual compounding, how much will be in your account after 8 years?

b. You must make a payment of $2,200 ten years from today. To prepare for this payment, you will make five equal deposits, beginning today and for the next four quarters, in a bank that pays a nominal interest rate of 12%, quarterly compounding. How large must each of the five payments be?

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