1. What is the APY if the interest rate is 4%, compounded annually? 2. What is the APY if the interest rate is 6%, compounded quarterly? 3. Your parents gave you $1,000 for your 16 th birthday. You...

1. What is the APY if the interest rate is 4%, compounded annually?

2. What is the APY if the interest rate is 6%, compounded quarterly?

3. Your parents gave you $1,000 for your 16^th
birthday. You want to deposit it in a CD account that is earning 6% annually. Calculate how much your gift will be worth when you graduate from college exactly six years from now using the following methods:

a. Long-hand formula

b. Reference table

c. Financial calculator