You have $10,000 that you must invest for a period of 4 years. The following account is available at your bank. The account pays 14 percent/year/year for years one and three, 15.5 percent/year/year for year two, and 15 percent/year/quarter for year four.

a. What is the balance in the account at the end of year 4?

b. An Internet bank offers the same type of account, but the order of the interest rates is reversed (i.e., the Internet bank pays 15 percent/year/quarter, 15.5 percent/year/year, and 14 percent/year/year in years 1, 2, 3, and 4, respectively). If you plan to leave your money on deposit for the entire 4 years regardless of the bank you choose, should you switch banks? Explain.