3. Solomon is planning to join Haramaya University in the year 2010 for a postgraduate study. He will be required to pay Birr 8000 as a tuition fee upon joining the university, that is, on November 2010. To accumulate this amount he has two combined alternative sources. The first is his father has promised to give him Birr 4000 right by November 2010. The second alternative is deposit to be made by him starting from November 2008 for the remaining balance. Assume that the interest earning on the deposit is 8% compounded quarterly.

a. Calculate the amount to be deposited by Solomon in November 2010.

b. Suppose that the interest rate on his father's money is 10% compounded semi- annually. How much must his father deposit in November 2008 to