P4A.1 For each of the savings account transactions in the accompanying table, calculate the following.

a. End-of-year account balance. (Assume that the account balance at 31 December 2010 is zero.)

b. Annual interest, using 6% simple interest and assuming all interest is withdrawn from the account as it is earned.

c. True rate of interest, and compare it to the stated rate of interest. Discuss your finding.

Date Deposit (Withdrawal) Date Deposit (Withdrawal)

1/1/11 $5000 1/1/13 $2000 1/1/12 (4000) 1/1/14 3000