5. (i) You have $35,000 and want to buy a house. After a search, you find your dream house but the owner is asking for $80,000. The owner will not bargain but he is willing to wait for you to get the money together. Your only choice is to put the money in the bank with a 10% interest rate. How many years do you have to wait to buy your dream house if the interest is compounded

(a) Quarterly?

(b) Monthly?

(c) Continuously?

(ii) If the seller says that he will only wait a maximum of 4 years, how much money do you need to put in your bank account today for the same 10% interest rate when compounded

(a) Quarterly?

(b) Monthly?

(c) Continuously?

in order to purchase the house in 4 years?