Do not use excell or any software. Use formulas/equations, and show calculations. Thank

you.

Question 2 (18 points total]. Consider the monthly cash flows shown in the diagram below. i=5% compounded weekly i=6% compounded continuously i=5.5% compounded monthly $650 $125 $125 $125 3 4 5 $125 $125 $125 7 8 9 10 months 0 1 2 6 (a) [6 points) Find the effective interest rates for each of the three given nominal interest rates. Note: Present your answers as percentage with the appropriate suffixes. 16% compounded continuously i-5.5% compounded monthly 1-5% compounded weekly Figure repeated from previous page for reference $650 $125 $125 $125 3 4 5 $125 S125 $125 7 8 9 10 months 0 1 2 6 (b) (12 points) Find the economic equivalence of this series at year 8, (i.e. find Vg). Question 2 (18 points total]. Consider the monthly cash flows shown in the diagram below. i=5% compounded weekly i=6% compounded continuously i=5.5% compounded monthly $650 $125 $125 $125 3 4 5 $125 $125 $125 7 8 9 10 months 0 1 2 6 (a) [6 points) Find the effective interest rates for each of the three given nominal interest rates. Note: Present your answers as percentage with the appropriate suffixes. 16% compounded continuously i-5.5% compounded monthly 1-5% compounded weekly Figure repeated from previous page for reference $650 $125 $125 $125 3 4 5 $125 S125 $125 7 8 9 10 months 0 1 2 6 (b) (12 points) Find the economic equivalence of this series at year 8, (i.e. find Vg)