A local bank has two saving options on $$1,000$ deposited over one year. The first offers $5\%$ interest

compounded on a continuous basis while the second offers $5\mathrm{.}1\%$ compounded quarterly. Assuming positive

marginal utility of wealth, which saving option should you choose and why?

Choose continuous compounding, as you will earn about $$0\mathrm{.}39$ more in interest.

Choose continuous compounding, as you will earn about $$0\mathrm{.}17$ more in interest.

Choose continuous compounding, as you will earn about $$1\mathrm{.}50$ more in interest.

Choose quarterly compounding, as you will earn about $$0\mathrm{.}71$ more in interest.

Choose quarterly compounding, as you will earn about $$0\mathrm{.}07$ more in interest.