Question: Suppose you deposit $1,000 in a bank savings account that pays interest at a rate of 8% per year. Assume that you don't withdraw

Suppose you deposit $1,000 in a bank savings account that pays interest at a rate of 8% per year. Assume that you don't withdraw the interest earned at the end of each period (year), but instead let it accumulate. (a) How much would you have at the end of year three with (a) simple interest? (b) compound interest?

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