Question: Question 5 (Total marks for this question = 8 marks)Suppose $10,000 is invested for 1 year at an interest rate of 6% per annum compounded.(a)

Question 5 (Total marks for this question = 8 marks)Suppose $10,000 is invested for 1 year at an interest rate of 6% per annum compounded.(a) Calculate the future value (FV) if the compounding is performed quarterly. What isthe effective annual rate of interest? (4 marks)(b) Calculate the future value (FV) if the compounding is performed monthly. What isthe effective annual rate of interest? (4 marks)

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