Assume a firm makes a $2,500 deposit into its money market account. If this
account is currently paying 7%, (yes, that's right, less than 1%!), what will the
account balance be after 1 year?
If Bob and Judy combine their savings of $1,260 and $975, respectively, and
deposit this amount into an account that pays 2 % annual interest,
compounded monthly, what will the account balance be after 4 years?