Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $5,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years? Calculating Future Values [LO1] For each of the following, compute the future value: Present Value Years Interest Rate Future Value $2,250 11 10% 8,752 7 8 76,355 14 17 183,796 8 7 Calculating Present Values [LO2] For each of the following, compute the present value: Present Value Years Interest Rate Future Value 6 7% $15,451 7 13 51,557 23 14 886,073 18 9