4. John has a choice of investing $25,000 in a savings account that pays 8% compounded semiannually or investing in another business venture that will pay $40,000 after 7 years. Which is a better investment for John and why?

5. Find an amount of an annuity for 10 years with a payment of $5,000 per year at an annual percentage rate of 10%, then solve the problem for an annuity due.

6. Find an effective rate that corresponds to a nominal rate of 8% compounded quarterly.

Please solve all of these problems without using a finance calculator, only formulas with steps.