Suppose you invest $1000 in an account paying 8% interest per year. What is the balance in the account after 3 years? How much of this balance corresponds to "interest on interest"? What is the balance in the account after 25 years? How much of this balance corresponds to "interest on interest"? Future Value 1000 Present Value Rate Time Future Value 8% years 3 $ 1,259.71 Future Value Present Value 1000 Rate 8% Time 25 years Future Value $ 6,848.48 Your bank pays 2.5% interest per year. You put $1000 in the bank today and $500 more in the bank in one year. How much will you have in the bank in 2 years?