Question: Question ------ (15 marks) Suppose that you put $ 10,000 in your saving account and your bank offers an interest rate of 2% p.a. What

Question ------ (15 marks)

Suppose that you put $ 10,000 in your saving account and your bank offers an interest rate of 2% p.a. What will be the compounded amount in five years and the corresponding annual effective rate (AER)?

(a) If it was compounded quarterly?

[3 marks]

(b) If it was compounded monthly?

[3 marks]

(d) If it was compounded weekly?

[3 marks]

(e) If it was compounded daily?

[3 marks]

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