Professor Gilmore invest $30,000 at 8% annual interest. Because he is well off, he leaves the money invested without withdrawing any interest for 8 years. At the end of 8 years, Gilmore withdraws the accumulated amount of money.

Instructions

a. Compute the amount Gilmore would withdraw assuming the investment earns simple interest.

b. Compute the amount Gilmore would withdraw assuming the investment earns interest compounded annually.

c. Compute the amount Gilmore would withdraw assuming the investment

Consider these factors in your computations:

-Future value of 1 @ 8% for 8 periods is 1.85096

- Future value of 1 @ 4% for 16 periods is 1.87298