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Answer the following question: a) A deposit of $8000 is made for four years, and will earn 12 per cent per annum, with interest compounding

Answer the following question:

a) A deposit of $8000 is made for four years, and will earn 12 per cent per annum, with interest compounding semi-annually. What will be the value of the deposit at maturity?

b) What would the maturity value of the same deposit be if interest was compounded annually, rather than semi-annually?

c) What does the difference in maturity values between Questions 5a and 5b appear to suggest?

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