In this question the following formulae may be used: (1 + i)". – 1 FV = PMT- i PV = PMT!-(1+i)" i Ten years ago, Max's grandparents started an investment to help cover the costs of her university studies. At the end of each month, they deposited $200 into an account earning interest at a rate of 4.5% per annum, compounded monthly. After 4 years, the annual interest rate paid by the account dropped to 3.6% , compounded monthly, and Max's grandparents increased their monthly payment into the account to $300 . (a) Calculate the current balance of the account. (b) Max is now ready to begin her university studies. Her grandparents have stopped depositing into the account but the account continues to earn interest at an annual rate of 3.6% , compounded monthly. Max makes withdrawals of $600 per month. Calculate the number of withdrawals which Max is able to make.

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing t…