Question 2 (25 marks) a) Find the effective rate for r= 8% compounded monthly. (2 marks) b) James borrowed $3,500 from a bank for his business setup. He plans to repay the debt in a single payment after 4 years. If the interest rate is 7% compounded quarterly, how much is the single payment? (4 marks) Continued... RAR 1/6 BMT1014 MANAGERIAL MATHEMATICS OCT 2020 c) What is the future value of an ordinary annuity at the end of 5 years if $370 is deposited each month into an account earning 2.4% compounded monthly? (5 marks) d) If $300,000 is to be saved over 25 years, how much should be deposited quarterly if the investment earns 8% interest compounded quarterly? (5 marks) e) Ryan bought a car with a down payment of RM 3,200 and payments of RM 650 per month for 10 years. If the interest rate is 3% compounded monthly, compute the purchase price of the car and the total interest paid. (9 marks)