Assume you are able to put $8,000 in a savings account today that pays 6% interest compounded annually.

1) How much will you have 5 years from now if you make no withdrawals?

2) Another financial institution offers to pay 6% (annually) compounded semi-annually. How much will your $8,000 grow to in five years at this rate?

3) Compare your answer. Make your decision which option is better economically.