Tomorrow a sum of PhPI0,000 will be invested at rate R. Tomorrow's rate is unknown at the moment, so suppose R has a uniform distribution from 0.02 to 0.04. The PHP10,000 will be compounded instantaneously for one year so U = h(R) = 10000e*. a) Use the transformation technique to derive the pdf of U. b) Find E(U), the expected amount of the investment after one year.

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