Calculating interest earned and future value of savings account. 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? L01