Assignment: You have $1,500 to invest today at 7 percent interest compounded annually.
Question 1: How much will you have accumulated in the account at the end of the following number of years?
1. Three years
2. Six years
3. Nine years.
Question 2: Use your findings in part (a) to calculate the amount of interest earned in:
1. the first three years (years 1 to 3)
2. the second three years (years 3 to 6)
3. the third three years (years 6 to 9).
Question 3: Compare and contrast your findings in part (2). Explain why the amount of interest earned in-creases in each succeeding 3-year period.