1. Assume that 1 year from now you plan to deposit $4,500 in a savings account that pays a nominal rate of 9%. a) If the bank compounds interest annually, how much will you have in your account 4 years from now? b) What would your balance be 4 years from now if the bank used quarterly compounding rather than annual compounding?

2. Suppose you deposited the $4,000 in 4 payments of $1000 each

at the end of Years 1, 2, 3, and 4. How much would you have in your account at

the end of Year 4, based on 8% annual compounding?