The couple presently have $25,000 in the account bearing 51/4 % annuaal interest compound continuously. Following options are available to them:
1. keep money in account they currently have
2. Invest money in account bearing 57/8% annual interest compund annually
3. Invest money in account bearing 51/2% annual interest compound quarterly
a. Find equation for value of investment as the functioin of time for each of three options.
b. Effective yield of the saving plan is percent increase in balance after 1 year. Determine effective yields for three options. How can effective yield be utilized to decide which option is best?