Answer:
First of all, this question is not complete. So, we will be hypothetically create two accounts and try to choose the one with the greater profit. 
Choice 1 = X = Final Amount after 12 years  = $5600
Choice 2 = Y = Final Amount after 12 years  = $6285.50
Hence, Lorena should choose choice 2, as it gives more profit over than choice 1. 
Step-by-step explanation:
First of all, this question is not complete. So, we will be hypothetically create two accounts and try to choose the one with the greater profit. 
Initial Deposit Amount = $3500 
Time period = 12 years 
Let's Suppose Lorena has two X and Y choices of accounts at H-town Bank.
X = simple interest of 5% over the initial amount for 12 years. 
Y = Compound interest 5% over the initial amount for 12 years.
Solution:
Let's calculate the profit for choice 1 = X
Simple interest = 5% 
Initial amount = $3500 
Time period = 12 years 
Formula = A = P (1 + rt) 
where, A = Final amount after 12 years 
t = time period in years  = 12
P = initial amount to be deposited = $3500
r = annual interest rate = 5%
Plug in the values to get the total amount. 
A = 3500(1+0.05x12) 
A = $5600 = final amount Lorena will get after 12 years. 
Let's calculate the profit for choice 2 = Y
Compound interest = 5% 
Initial amount = $3500 
Time period = 12 years 
Formula = A = P  
 
where, 
A = Final amount after 12 years 
t = time period in years  = 12
P = initial amount to be deposited = $3500
r = annual interest rate = 5%
n = number of times interest rate is applied or compounded. = 12 
Plug in the values to get the total amount. 
 A = P  
 
A = $6285.50
Hence, Lorena should choose choice 2, as it gives more profit over than choice 1.