Problem 2 (10 points): Julia has set an automatic deposit plan between her place of employment and her bank (Bank X). Every, month $200 is deposited. The bank pays 7% interest compounded monthly. Another bank (Bank Y)pays a similar rate but offers continuous compounding. Over three years what would be the monetary gain of using the bank that is offering continuous compounding? Problem 3 (10 points): Solve the previous problem if Bank X paid 7% interest compounded quarterly, instead. Problem 4 (10 points): The initial construction cost for a facility is $6,000,000. The monthly operating cost is $3500 and maintenance cost of the facility is $2500. The facility must be renovated every 5 years at a cost of $100,000. How much initial fund is enough to construct, operate and renovate the facility in perpetuity? Monthly effective interest rate is 0.5%. Hint: Convert the renovation cost which happens every 5 years into its equivalent monthly amount