You are saving for a downpayment to purchase a house. You want to have $100,000 five years from now. You believe you can earn 7% interest on your savings each year.

a. If you set your savings aside each year for the next five years, how much do you need to save each year?

b. If you set your savings aside each quarter for the next five years, how much do you need to save each quarter?

c. If you set your savings aside each month for the next five years, how much do you need to save each quarter?

d. Explain the difference between the amounts calculated in items A, B, and C above.