Congratulation, you are millionaire. No, the Lottery office did not call. However, an officer from Bank of America has just informed you of an account that your grandmother set up years ago to be given to you on this date. The balance is exactly one million dollars. She made an equal annual deposit into the account, with the final one occurring exactly 50 years ago in 1970. The account has earned 3.2% (APY) every year.

A. How much money was in the account on this date in 1970?

B. How much was each of the ten annual payments that Grandma made (1961-1970)?

Suppose grandma could have invested the money in the following two options:

1. Capital One would offer the same arrangements except with a 3.18% (APR) rate that was compounded weekly (52 weeks per year).

2.WSFS offers a different type of deal. Instead of only making ten payments into the account and then allowing the balance to grow, WSFS would have continued to make the annuity payment for the next 50 years for her also. In other words, grandma would make the first 10 payments and WSFS would have continued to make the exact same annuity payment for the next 50 years. The only catch is that the account will earn an annual effective rate (APY) of 0.25% for all 60 years. Compare these deals to the Bank of America answer in A and B.

C. Would the Capital One offer have been a better deal than Bank of America? Demonstrate why or why not.

D. Would the WSFS offer have been a better deal than Bank of America? Demonstrate why or why not.