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8 Simple and compound interest (LO 1] a) What will be the accumulated value, at the end of 10 years, of $1000 invested in a savings account that pays 8 per cent per annum? Assume that no withdrawals are made from the savings account until the end of the tenth year. What is the interest component of the accumulated value? b) Assume that interest is withdrawn every year. What will be the total interest earnings at the end of the tenth year? Why does this amount differ from the interest earned in Problem 8 (a)