Question: Read the following context; Ms. Lee is working hard every day. She has been saving every month for 5 years an amount per month that

Read the following context;

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.

With her current savings, Ms. Lee is planning to buy the house within the next 11 years. Considering that its market price will rise up to $170,000, and the current market rates are around an annual 8%, calculate each of the following investment options and explain which is more attractive based on those calculations. Please show your workings for each option.

Investing all her savings in a product that offers an annual 12% simple interest for 11 years.
Investing part of her savings in a product that offers an annual interest of 7% compounded monthly for 11 years to produce $170,000.
Investing all her current savings in a project that will produce annual cashflows of $15,300 for 11 years.

Best option:

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