6.1 This is a thought experiment using a basic savings account to illustrate how various assumptions about growth rates would affect the account balance over time. Imagine that you put $1000 in a savings account at 10% annually compounded interest. (14 marks total) a. How much could you take out each year and still keep the original $1000 in the account? Complete the table below to support your conclusion. (4 marks) Year Beginning Add: Interest Less: Ending balance balance earned (10%) Withdrawal 1 $1000 $1000 1000 1000 AUN 1000 1000 1000 1000 b If you left half of the interest earnings in the account and took out the other half at the end of each year, at what rate would the balance grow from year to year (the balance after you have made your withdrawal)? Complete the table to show your calculations. (5 marks) Year Beginning Add: Interest Less: Withdrawal Ending balance earned (10%) (50% of interest) balance $1000 Annual growth rate C. If you took out 80% of the interest earnings in the account and left 20% in the account at the end of each year, at what rate would the balance grow each year (the balance after your withdrawal)? Complete the table to show your calculations. (5 marks) Year Beginning Add: Interest Less: Withdrawal Ending balance balance earned (10%) (80% of interest) 1000 WN Annual growth rate