3. a. What is meant by compound interest? How does compound interest differ from simple interest? You would like to buy a new automobile. You have $50,000. But the car costs S 68,500. If you can earn 9 percent, how much do you have to invest today to buy the car in two years? Do you have enough? Assume that the price will stay the same. b) Suppose, you have purchased 1000 shares of a stock. The investment costs now $500.000. If the company gives 30 percent stock dividend consistenily for the next ten years, how many shares will you have at the end of ten years period?Suppose, the price of such a stock will become exactly $2,000 each after ten years from now, then what will be the market value of your investment? 234