3. Upon John Lennens death, Yoko Omno inherited a large amount of money. She has decided to invest $2.5 million for the next 10 years. The bank has offered her an 8.75% annual rate of interest with different compounding frequencies.

a. If Yoko invests $2.5 million at 8.75% annual interest with semi-annual compounding, how much would she have in 10 years?

b. What would be her effective annual rate for semi-annual compounding?

c. If Yoko invests $2.5 million at 8% annual interest with quarterly compounding, how much would she have in 10 years?

d. What would be her effective annual rate for quarterly compounding? Round to 0.00%

. e. If Yoko invests $2.5 million at 8% annual interest with monthly compounding, how much would she have in 10 years?

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

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