Question: Ms. Lee is working hard every day. She has been saving every month for 5 years an amount per month that represents a total sum

Ms. Lee is working hard every day. She has been saving every month for 5 years an amount per month that represents a total sum of $75,500. Now she is planning her future, but she is still deciding what to do. When she started working, she didnt have a specific plan, but she has always dreamed of having a house in the valley.

After thinking about the previous plans, Ms. Lee decided that waiting for 11 years was too long. Please, calculate the following two options and indicate which of them would be more interesting. Please show your workings for each option.

  1. Putting all her savings in an account for 6 years at an annual interest rate of 8% compounded quarterly, then selling her small flat for $70,000 and summing it up her amount of savings.
  2. Putting all her savings in an account for 4 years at an annual interest rate of 7% compounded quarterly, and investing the total savings at that time for 2 more years at a 11% compounded monthly.

Best option:

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