. If you had the option to invest $1,000 under the following options, which one would generate the highest return after two years?

1. Invested at 4.9% yearly, compounded annually

2. Invested at 4.75% yearly, compounded twice per year

3. Invested at 4.85% yearly, compounded three times per year

4. Invested at 4.65% yearly, compounded six times per year

5. Invested at 4.65% yearly, compounded 365 times per year

.Assume your uncle will pay you $100 for each of the next two years and $200 in years 3 and these amounts will be paid at year end. Assume the interest rate is 10% for the first two years and 12% for the next two (years 3 and 4). What is your uncle's promise worth in today's dollars? (Round your answer)

1. $317

2. $342

3. $453

4. $512

5. $600