Question: a. Suppose you deposit $7000 today into a savings account paying 6% interest, and then at the end of each year you add $4000 to

a. Suppose you deposit $7000 today into a savings account paying 6% interest, and then at the end of each year you add $4000 to the account, what is the value of your investment at the end of year 4?

answer choices:

21835.58

26335.80

27385.71

21071.51

b. Suppose you deposit $100 today and every year for 2 more years into a savings account paying 8% annually. How much is your account worth at the end of year 3?

answer choices:

350.61

257.71

324.64

278.33

c. You are offered two investment opportunities, investment A pays 5% annually compounded for 6 years, investment B pays 4.7% compounded quarterly for 5 years. Which would you prefer to invest $100 in?

*Compare values approximated to two decimal places

answer choices:

Investment A

Investment B

Indifferent between the two

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