An investor wants to make a two period investment and is presented with the following investment options:

a) Invest for one period at 4.41% pa and then for a further single period at 5.17%pa (b) Invest for two periods at 4.89%pa

Select the investment option that should be chosen to maximise the return. Assume that the interest rates are compound interest rates. Round all percentage calculations to 2 decimal places.

investment option (b) investment option (a) either, because both investment options will result in the same return