3. Julian Lemon inherited some money from his father after his death. He used part of it to finance his own musical career, which is going fairly well. He has decided to invest the $5 million remaining from his inheritance in a savings account that pays 7.25% interest. The bank has offered Julian different compounding frequencies, and Julian expects to invest the money for the next 10 years.

a. If Julian invests $5 million at 7.25% annual interest with semi-annual compounding, how much would he have in 10 years?

b. What would be Julians effective annual rate for semi-annual compounding? Keep 2 decimal places (0.00%).

c. If Julian invests $5 million at 7.25% annual interest with quarterly compounding, how much would he have in 10 years?

d. What would be Julians effective annual rate for quarterly compounding? Keep 2 decimal places (0.00%).

e. If Julian invests $5 million at 7.25% annual interest with monthly compounding, how much would he have in 10 years?

f. What would be Julians effective annual rate for monthly compounding? Round to 0.00%.

g. What would happen to Julians investment if compounding frequency increases even more (daily or continuous compounding)? Explain why.