After returning from the quest of a lifetime, Bilbo Baggins is in confusion regarding what to do with the treasure he took from the troll cave. His wizard friend Gandalf suggests Bilbo deposit the treasure with Isengard Finance Company, run by Saruman, which offers a return of (83+3)% compounded daily for each and every year. However, Bilbo heard during his journey that the Bank of Rivendell, managed by Elf king Elrond offers a return of (83+2)% compounded continuously for the first year and (38+1)% compounded monthly from the second year onwards. Where should Bilbo deposit the treasure if he decides to invest it (Do not round off in any step except while reporting the final answer, unnecessary/illogical rounding off will be severely penalized? Assume 365 days in a year. Some of you may get unusually large or small values; however, if you follow the right logic, your answer should be correct.):

a) 03+2 years

b) 03+3 years

c) Explain your calculations to Bilbo Baggins.