. Selecting Between Two Investments. Meridian Township has \(\$ 60,000\) of surplus cash in a fund that will not be used for one year. The township treasurer has two investment possibilities available:

(a) Invest in 10 percent corporate commercial paper for six months and then reinvest the proceeds in an 8 percent corporate bond for the remaining six months.

(b) Invest now in an 8 percent corporate bond maturing in three months, reinvest the proceeds in 10 percent treasury bills for six months, and hold the proceeds in the township's 4 percent interest-bearing checking account for the remaining three months.

\section*{Required:}

Which choice gives the township the higher amount at yearend? Show calculations.