Assignment: 1. Study pages 3-31. Homework: 1, Assume you just invested $1000 into an investment account that pays 6% annually. How much would you have to add to the account each year if you wanted $4000 in your account at the end of year 4? Assume you plan to make equal installments (payments) to your account at the end of years 1,2,3 and 4. In other words, find A for the spreadsheet below using the trial and error method a) What is A assuming the investment pays simple interest? b) What is A assuming the investment pays compound interest? Rate of Return 6.00% Simple Interest Compound Interest Cumulative Cumulative End of year Interest Earned equivalent Interest Earned equivalent EOY) Cash Flow during year EOY cash flow during year EOY cash flow 0 $1,000 SA SA SA SA