Assume that 1 year from now you plan to deposit $1000 in a savings account that pays a nominal rate of 8%. (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?

(c) Suppose you deposited the $1000 in 4 payments of $250 each at the year 1,2,3, and 4. How much would you have in your account at the end of Year 4, based on 8% annual compounding?

(d) Suppose you deposited 4 equal payments in your account at the end of Years 1,2,3, and 4. Assuming an 8% interest rate, how large would each of your payments have to be for you to obtain the same ending balance as you calculated in part a?