Question 2 [11 mark] You are considering a 10 year investment plan in which your target is $150,000. There are two options available for you: Option 1: Putting exacty an equal amount of money into an investment fund at the end of each year for 10 years with the rate of retum of 8%, annually compounding. Option 2: Putting your initial imestment of $50,000 in an asset that will pay you 9% rate of return, compounding quarterly for the first 6 years. The rate of return, compounding annually for the last 4 years (the period from year 7 to the end of year 10 ) has not been defined yet. Required: a) Calculate the amount of money you should put into your investment fund each year in Option 1? (4 marks\} b) Compute the effective annual interest rate (EAQ) in the first 6 vears in Option 2? ? 2 marks) ANSWER: 4. Compute the ammally compotinding rate of return you shouid targe: for your asset in the following 4 years to fet $150,000 at the end of year ten in Optian 2? \{4 marks\}