Hamza has recently received a bonus of $5000 from her employer. She is not sure what she would eventually like to do with this money. For the time being she is considering two GIC investment options:

a. Invest $5000 in a 2-year GIC that pays interest at 1.65 percent, compounded annually.

b. Invest $5000 in a 1-year GIC that pays interest at 1.3 percent, compounded annually, and then reinvest the maturity amount for another year at the same rate of return. Which option will provide Hamza with the greatest return on her money? By how much?