Each year for the next 10 years, Carmen Lector will deposit $4,000 into an investment fund that pays 8% compounded annually. Use the following tables:
Excerpt from the Present Value of an Ordinary Annuity of $1 Table

\begin{array} { | c | c | c | c | } \hline \text { Periods } & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.92593 & 0.91743 & 0.90909 \\\hline 2 & 1.78326 & 1.75911 & 1.73554 \\\hline 3 & 2.57710 & 2.53130 & 2.48685 \\\hline 4 & 3.31213 & 3.23972 & 3.16986 \\\hline 5 & 3.99271 & 3.88965 & 3.79079 \\\hline 6 & 4.62288 & 4.48592 & 4.35526 \\\hline 7 & 5.20637 & 5.03295 & 4.86842 \\\hline 8 & 5.74664 & 5.53482 & 5.33493 \\\hline 9 & 6.24689 & 5.99525 & 5.75902 \\\hline 10 & 6.71008 & 6.41766 & 6.14457 \\\hline\end{array}

Excerpt from the Present Value of an Annuity Due of $1 Table

\begin{array} { | c | c | c | c | } \hline \text { Periods } & 8 \% & 9 \% & 10 \% \\\hline 1 & 1.0 & 1.0 & 1.0 \\\hline 2 & 1.92593 & 1.91743 & 1.90909 \\\hline 3 & 2.78326 & 2.75911 & 2.73554 \\\hline 4 & 3.57710 & 3.53130 & 3.48685 \\\hline 5 & 4.31213 & 4.23972 & 4.16986 \\\hline 6 & 4.99271 & 4.88965 & 4.79079 \\\hline 7 & 5.62288 & 5.48592 & 5.35526 \\\hline 8 & 6.20637 & 6.03295 & 5.86842 \\\hline 9 & 6.74664 & 6.53482 & 6.33493 \\\hline 10 & 7.24689 & 6.99525 & 6.75902 \\\hline\end{array}

a. What is the present value of those investment payments if the first of 10 deposits are made at the end of each year?
b. What is the present value of those investment payments if the first of 10 deposits are made at the beginning of each year?

What Is the Effective Interest Rate for an Investment Fund

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