2. Johnny deposited $1000 in his savings account last year and earned $50 in interest. He has decided to leave the $50 in the account so that he can earn interest on the $50 this year. Assuming the interest rate does not change, how much will be the interest earned on last years interest earnings (interest on interest)?

3. Calculate the FV of a $412 investment at the end of four years assuming an annually compounded rate of return of 6.7%.

4. Calculate the PV of $1,049 that will be received in five years assuming a discount rate of 9%.