Answer:
Step 1
The equation for each step is given below.
let x be the value of investment and n time period, then
Option 1 X= 25000 (1.0525)^N
Option 2 X= 25000 (1.05875)^N
Option 3 X= 25000 (1.0562)^N (annual return = (1+5.5/4)^4-1))
Step 2
By solving each equation given in above subject we can calculate value under each option (N=6)
Option 1 X= 25000 (1.0525)^6 = 33,984
Option 2 X= 25000 (1.05875)^6 = 35,213
Option 3 X= 25000 (1.0562)^6 = 34,707
Step 3
Thes best is to go with option 2 as it will give high return.
