Use a spreadsheet or financial program on a calculator or computer.

1. Track the future values of two investments of $5000, one at 6.3% compounded quarterly and another at 6.3% compounded monthly for each interest payment period for 10 years.

(a) How long does it take each investment to be worth more than $7500?

(b) What are the values of each investment after 3 years, 7 years, and 10 years?

2. Track the future values of two investments of $1000, one at 6.0% compounded semiannually and one at 6.6% compounded semiannually for each interest payment period for 25 years.

(a) How long before the difference between these investments is $50?

(b) How much sooner does the 6.6% investment reach $1500?