Question: A local bank has two saving options on $ 1 , 0 0 0 deposited over one year. The first offers 5 % interest compounded

A local bank has two saving options on $1,000 deposited over one year. The first offers 5% interest
compounded on a continuous basis while the second offers 5.1% compounded quarterly. Assuming positive
marginal utility of wealth, which saving option should you choose and why?
Choose continuous compounding, as you will earn about $0.39 more in interest.
Choose continuous compounding, as you will earn about $0.17 more in interest.
Choose continuous compounding, as you will earn about $1.50 more in interest.
Choose quarterly compounding, as you will earn about $0.71 more in interest.
Choose quarterly compounding, as you will earn about $0.07 more in interest.
A local bank has two saving options on $1,000 deposited over

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