A bank offers the following choices for two investment schemes: Scheme Term in years) Nominal annual interest rate A 1 5.00% Compounding frequency monthly quarterly B 5 5.00% The investments mature at the end of the term. The bank does not permit early withdrawals. During the next 5 years the bank will continue to offer investment schemes with the same terms and interest rates. An investor is deciding between the 2 schemes, and plans to deposit $10,000 in the bank and withdraw both principal and interest at the end of 5 years. (a) For each scheme, find the accumulated value at the end of 5 years. (Round your answers to 2 d.p.) (b) Based on your answer in Part (a), which scheme should the investor choose and why? [2] (c) The investor decides to invest his $10,000 for 6 years instead of 5 years. He has two options. For the first option, he could first invest in scheme A for one year, withdraw the principal and interest at the end of 1 year, and then invest that amount in scheme B for the remaining 5 years (or vice-versa). The second option would be to invest in Scheme A for 6 consecutive years. Compute the annualized effective interest rates over the 6 years for both investment strategies, rounding your answers to 6 decimal places. Based on your calculations, which would be a better strategy for the investor and why? [5]