1. You just sold your car for $18,000. You have deposited it into your bank account. You are keen to invest the funds for one year as you are concentrating on your studies for the moment. Which of the following options for depositing the funds will earn you more interest over the coming year. Show your calculations including formula. (2 marks)

a. Fixed Interest rate of 3% paid at maturity.

b. 2.9% Interest rate compounded and reinvested on a monthly basis.

c. 2.8% Interest rate compounded and reinvested on a daily basis.