James has €4,000 to invest in a savings account at 5% interest compounded annually.

a. Find out the compound value in the account after (1) 2 years, (2) 6 years, and (3) 10 years.

b. Use your findings in part a to calculate the amount of interest earned in (1) the first 2 years (years 1 to 2), (2) the next 4 years (years 3 to 6), and (3) the last 4 years (years 7 to 10)

c. Compare your findings in part b. Why does the amount of interest earned increase in each succeeding period?