Problem 5.1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $65.000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts Problem 5-2 Calculating Future Values (LO1] For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Years Interest Rate Future Value Present Value $ 1.800 7.852 67.355 174.796 8 8 13 15 6 5 Problem 5-3 Calculating Present Values (LO2] For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value Years 12 Interest Rate 6 % 12 3 Future Value 15.651 53.557 888.073 552. 164 28 13 30 10 Problem 5-4 Calculating Interest Rates (LO3] Solve for the unknown interest rate in each of the following (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Years Interest Rate Present Value S 230 3 350 38.000 17 18 Future Value 269 972 163.663 300.405 37.261 20