Problem 5-4 Future Values (LO1)

a.	You deposit $1,000 in your bank account. If the bank pays 4% simple interest, how much will you accumulate in your account after 10 years?

Future value

$

b.	What if the bank pays compound interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Compound interest

$

c.	How much of your earnings will be interest on interest? (Round your answer to 2 decimal places.)

Interest on interest

$