You deposit $10,000. How much will you have in 4 years at (a) 8% compounded annually, and (b) at 12% compounded annually?

A savings and loan association offers depositors a $10,000 lump- sum payment 4 years hence.

a. How much will you be willing to deposit if you desire an interest rate of 8% compounded annually? (b) How much at an interest rate of 12%?

Repeat requirement 2, assuming an interest rates of 6% and do the calculation twice, assuming (a) annual and then (b) semiannual compounding.