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. Sammy wants to take a sabbatical and he needs $ 9 0 , 0 0 0 to do so . Today, he has $

. Sammy wants to take a sabbatical and he needs $90,000 to do so. Today, he has $25,000 to invest at 8% interest (annual compounding). In how many years will he have $90,000?
a. Annual compounding? ____________(Ans: 16.64 years)
b. If Sammys bank pays interest on a quarterly compounding convention, how many years will it take? _____________(Ans: 16.17 years)
c. Monthly compounding? _____________(Ans: 16.06 years)
d. Daily compounding? _____________(Ans: 16.01 years)

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