SECTION 2 - PROBLEMS Show all workings and formulae Problem 1 Arianne deposits her bonus of $5,000 in a savings account. TOTAL: 40 MARKS a) Assuming the deposit earned a 9% rate of interest compounded quarterly, how much would she have at the end of five years? 4 Marks 2 Marks b) Compute the effective annual rate on this account. Year 1 Year 2 Year 3 Year 4 Year 5 6 Marks Problem 2 7 Marks Xeniyah is saving towards a down payment on her first brand new car, which she hopes to purchase in 5 years. She plans to set aside most of her annual Christmas bonus in an enhanced savings account over the next five (5) years as follows: $3,500 $5,000 $7,500 $7,500 $8,000 Xeniyah believes that she should earn an annual rate of 8% on this investment. How much would she have for the down payment by the end of year 5