(a)

Verify that the value of the account at the beginning of the third year is .

At the beginning of the first year, the value of the account will be .

At the beginning of the second year, the value of the account,

.

At the beginning of the third year, the value of the account,

Thus, the value of the account at the beginning of the third year is .

(b)

Find  the value of the account at the beginning of the fourth year if .

The value of the account at the beginning of the fourth year is .

The annual rate of interest is .

The value of the account at the beginning of the fourth year is .

(a) The value of the account at the beginning of the third year is .

(b) The value of the account at the beginning of the fourth year is .