(a) Two parents invested $1000 into a bank account for their child when she was born. The bank account paid simple interest of 6% p.a. The child is able to access the account on her 21st birthday. What will be the future (accumulated) value of this investment after 21 years?

(b)If you invested $5,000 today for 3 years at a compound interest rate of 18% per annum, what would the accumulated value be in your account at the end of 3 years?

(c) Calculate the effective annual interest rates corresponding to 10% p.a., compounding:

(i) quarterly i.e. 4 times per year

(ii) monthly i.e. 12 times per year

(iii) daily i.e. 365 times per year