5) Solve the problem.

A bank gives you two options to choose from for your investments:

Option A: 6% annual interest rate compounded yearly; and

Option B: 5.9% annual interest rate compounded quarterly.

Which of the two options is the better investment at the end of the 2 years.

6) Assuming the general level of inflation in Ghana is 15% per year; find the number of years it will take for prices to double. The currency of Ghana is called the cedi and its symbol is like that of the U.S. cent (), but placed in front of the quantitative amount like the dollar symbol.

7) A loan of $10,500 was given at an interest rate of 4% payable at the end of the fifth year. Find the continuous compound amount to be paid back.