8. a) Sam deposited $18,000 at Bank A which credited interest at 4.28% compounded annually. He kept his account active for 8 years. When he closed his account, he took the proceeds to Bank B and opened a new account. For the next 7 years his money earned 7.28% compounded semi-annually. How much money did Sam have when he closed his account at Bank B? [use formulas]

b) Sally would like to purchase a home in 12 years. She opens at account at Fidelity to save for her down payment. If she deposits $2,500 at the beginning of every month for the next 12 years and account earns 6.24% compounded monthly, how much will she have for her down payment?

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