Assume that 1 year from now; you will deposit $1,000 into a savings account that
pays 8%.
a. If the Bank compounds interest annually, how much will you have in your account 4 years from now?
b. What would your balance 4 year from now be if the bank used quarterly compounding rather than annual compounding?
c. Suppose you deposited the $1,000 in 4 payments of $250 each at Years 1, 2, 3, and 4. How much would you have in your account at Year 4, based on 8% annual compounding?