If interest compounded annually I would have saved $5,519.06 at the end of four years. If interest compounded semiannually I would have saved $5,522.43 at the end of four years. 2. Change the interest rate to a higher rate. How much will you have at the end of four years if interest is compounded annually at a rate of 3%? How much would you have at the end of four years if interest is compounded semiannually?

If the interest compounded annually I would have saved $5,627.54 at the end of four years.

If the interest compounded semiannually I would have saved $5,632.46 at the end of four years.

3. Now change the interest rate to a lower rate. How much will you have at the end of four years if interest is compounded annually at a rate of 2%? How much would you have at the end of four years if interest is compounded semiannually?

If the interest compounded annually I would save $5,412.28 at the end of four years.

If the interest compounded semiannually I would save $5,412.16 at the end of four years.

4. You have $10,000 in credit card debt, at a 14% interest rate. When is it beneficial to pay off the debt vs. putting money in a savings account? Explain the pros and cons of either option. I think with a 14% interest rate is would be beneficial to pay off the debt instead of putting money in a savings account. I would pay it off as fast as possible because the cost would be after 1 year with 14% $11,449.00, and after four years $17,181l86. This would be a big lump sum of money I could save if I pay it off fast. Pros and cons of saving money: I would have some savings I could use as collateral when applying for loans and I also would gain interest on my savings. Interest rates on savings accounts are usually lower,...

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