You are interested in investing $1000 over the course of 6 years. After looking at different options, you find 4 that seem promising. Rank options a through d below by the amount of money the investment returns. Make sure to show work.
(a) A compound interest account that accrues 5% APR compounded monthly.
(b) A compound interest account that accrues 5.25% APR compounded yearly.
(c) A simple interest account that will accrue 3% APR for the first year, but 6.5% APR for each year after.
(d) A city bond that gives 6% APR but the city won't sell any for the next two years, so your investment will be 4 years long.