Time value Personal Finance

You have $3,600 to invest today at 6% interest compounded annually.

A. Find how much you will have accumulated in the account at the end of (1) 3 years, (2) 6 years, and (3) 9 years.

B. Use your findings in part (A) to calculate the amount of interest earned in (1) the first 3 years (years 1 to 3), (2) the second 3 years (years 4 to 6), and (3) the third 3 years (years 7 to 9).

C. Compare and contrast your findings in part (b) . Explain why the amount of interest earned increases in each succeeding 3-year period.