1. (10 Marks) Suppose you deposit $500 in a bank savings account that pays interest at a rate of 7% per year. Assume that you don't withdraw the interest earner at the end of each compounding period (year). a) How much would you have at the end of year 4 with simple interest? b) How much would you have at the end of year 4 with compound interest? 2. (18 Marks) If you accumulated $2,000 on your credit card. You completely forgot to pay off your credit card since you do not use it often. The nominal interest rate on the credit card is 30%. How much would you have to pay after 18 months if the interest is compounded: a) Annually b) Semi-Annually c) Quarterly d) Monthly c) Weekly f) Daily