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Assume that one year from now, you will deposit $1000 into savings account that pays 8 percent.
A. If the bank compounds interest annually, how much will you have in your account four years from now?
B. What would your balanced four years from now be if the bank used quarterly compounding rather than annual compounding?
C. Suppose you deposited the $1000 in 4 payments of $250 each at year 1, year 2, year 3, and year 4. How much would you have in your account at year 4, based on 8 percent annual compounding?
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