Question 1. An investor deposits $50,000 today in an interest bearing account. The account pay 7% interest annually, and the investor expects to withdraw the principal plus interest at the end of 5 years. How much would the investor accumulate by the end of 5 years if interest is compounded monthly?
Question 2. You plan to deposit $500 at the beginning of each month in an account for a period of 10 years. Interest is to be compounded monthly at an annual rate of 5%. What is the future value of this series of deposits at the end of 10 years?