The interest earned on a savings deposit is a function of four variables - The ambunt of money held on deposit (PV) - The method to be used in calculating interest-for excample, simple versus compound intinrest - The interest rate applied to the amount on deposit (I) - The frequency with which the account's interest is earned-for example, annually, semiannually, quarterfy, monthly, or dally. Another important variable is the amounk of time during which the funds are held in the savings account (a). These variables and their interaction determine the account's balance at a particular point in time, How do these variables work together to determine an account's balance? Which of the following formulas would you choose to caloulate the future baiance on an aceount that earns compound interest? FV=(PVi)nFY=PV(l+i)nFY=PV(1+i)tFY=PVn(1+1) Use either the table of future value factors, your financial calculator; or the future value formula to answer the questions that follow. Kate On Kate's first birthday, her parents deposited $12,500 into a savings account that earns a foced rate of 8.00% and compounds interest annually. By Kate's 21 st birthday, her account will have accumulated (Hint: Round your answer to the nearest cent-) What-If Scenario If Kate's parents had waited until her 10 th birthday to make their initial deposit of $12,500 into the same account, by Kate's 21 st blithiday, the balance would have been (Hint: Round your answer to the nearest cent.)