2) Ceyda Aktan, who has recently gotten a $5,000 bonus pay check from work, decided to place all her money in a savings account that pays an annual compound interest of 12%. (40 Points)

1. Calculate the amount of money that will accumulate if Ceyda leaves the money in the bank for 5 and 10 years.
2. Re-calculate part a using a compounding period that is (1) semiannual and (2) quarterly.
3. Suppose Ceyda moves her money into an account that pays 8%. Rework part a and b using the 8% interest rate.
4. What conclusions can you draw about the relationship among interest rates, time and future sums from the calculations you just did?