Because of an increasing population, the executive committee of a local community Mall is planning to build an extension to its main building. In order to fund this building project, the Mall will need to have $300,000 available at the beginning of January 2017. To achieve this, the Mall intends to make 8 equal quarterly instalments of $X into a sinking fund which pays a quarterly compound interest rate of 1%. The first of the instalments was paid at the beginning of April 2017. (a) Calculate the annual effective interest rate. [1 Mark] (b) Calculate the value of the quarterly instalments, $X.