Question $2(9$ marks$)$

a$.$ An investment plan guarantees that you can receive back $$30,000$ seven years later by investing

$$10,000$ today. What interest rate do you earn if the rate is compounded semi$-$annually? $(3$

marks$)$

b$.$ EAF Bank is newly established and offers savings deposits rate of $12\%$ compounded monthly. If

you deposit $$3,000$ into that account, how many years will you have to wait until your account is

worth $$5,000?(3$ marks$)$

c$.$ An insurance company is selling a perpetara annuity contract that pays $$6,000$ quarterl. The

contract sells for $$300,000.$ What is the APR on this investment product? $(3$ marks$)$