Problem:
You have $5,000 to invest. You are considering two different investment options. Option A offers 7% interest compounded quarterly for 5 years while option B offers 5% interest compounded continuously for five years.
Required:
Question 1: Which option do you think will be the better investment and why?
Question 2: Using the formulas below, determine which option results in the largest future value of your principal. Was your original guess the better of the two options? Please use complete sentences