4. (Financial application: compound value) Suppose you save $100 eachmonth intoa savings account with the annual interest rate 5%. So, the monthly interest rate is 0.05/12=0.00417. After the first month, the value in the account becomes100 * (1 + 0.00417) = 100.417After the second month, the value in the account becomes(100 + 100.417) * (1 + 0.00417) = 201.252 After the third month, the value in the account becomes(100 + 201.252) * (1 + 0.00417) = 302.507