Interest rates. Get the value of the investment after 5 years only!!! (Interest rates) Show by algebra that the investment y(1) from a deposit yo after 1 years at an interest rate r is Ya(1) = yo[1 +...

Extracted text: Interest rates. Get the value of the investment after 5 years only!!! (Interest rates) Show by algebra that the investment y(1) from a deposit yo after 1 years at an interest rate r is Ya(1) = yo[1 + r]° (Interest compounded annually) Ya1) = yo[1 + (r/365)J3631 (Interest compounded daily). Recall from calculus that (1 + (1/n)]" → e as n → *; hence [1 + (r/n)]"t → e"; thus y1) = yoe" (Interest compounded continuously). What ODE does the last function satisfy? Let the initial investment be $1000 and r = 6%. Compute the value of the investment after 1 year and after 5 years using each of the three formulas. Is there much difference?