Compound interest

5. Two offers are received by Joshua Brown for his house. One is a cash offer of $175 000. The other is an offer of $88 000 cash and $95 000 to be paid in three years. If the money is 7% per annum compounded annually, which is the better offer and why? (3 marks) 6. An investment of $3000 is accumulated at 6% compounded quarterly for three and a half years. At the same time, the interest rate is changed to 9% compounded monthly. How much is the investment worth three years after the change in interest rate? (6 marks)