Problem $1\mathrm{.}38$

Valley Rendering, Inc. is considering purchasing a new flotation system for grease recovery. The company can finance a $$150,000$ system at $5\%$ per year compound interest or $5\mathrm{.}5\%$ per year simple interest. If the total amount owed is due in a single payment at the end of $3$ years, $($a$)$ which interest rate should the company select, and $($b$)$ how much is the difference in interest between the two schemes?