Question: Problem 5-4 Future Values (LO1) a. You deposit $1,000 in your bank account. If the bank pays 4% simple interest, how much will you accumulate

Problem 5-4 Future Values (LO1)

a.

You deposit $1,000 in your bank account. If the bank pays 4% simple interest, how much will you accumulate in your account after 10 years?

Future value $

b.

What if the bank pays compound interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Compound interest $

c.

How much of your earnings will be interest on interest? (Round your answer to 2 decimal places.)

Interest on interest $

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