CALCU LATIN G IN TE RE ST E ARN E D AN D FU TURE ALU E O F SA IN G S ACCOUN T. If you put $6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint:

Use the future value formula.) How much interest will you earn during the five years?

If you put $6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years? lo1