Which do you$$ prefer: a bank account that pays $5\%5\%$ per year$($EAR$)$ for $33$ years or

a$.$ An account that pays $2\mathrm{.}5\%2\mathrm{.}5\%$ every $66$ months for $33$years$?$

b$.$ An account that pays $7\mathrm{.}5\%7\mathrm{.}5\%$ every $1818$ months for $33$years$?$

c$.$ An account that pays $0\mathrm{.}5\%0\mathrm{.}5\%$ per month for $33$years$?$

Question content area bottom

Part $1$

a$.$ An account that pays $2\mathrm{.}5\%2\mathrm{.}5\%$ every $66$ months for $33$years$?$

If you deposit $ $1$$$1$ into a bank account that pays $5\%5\%$ per year for $33$years$,$ the amount you will receive after $33$ years is $$$ enter your response here. $($Round to five decimal$$ places.$)$

Part $2$

If you deposit $ $1$$$1$ into a bank account that pays $2\mathrm{.}5\%2\mathrm{.}5\%$ every $66$ months for $33$years$,$ the amount you will receive after $33$ years is $$$ enter your response here. $($Round to five decimal$$ places.$)$

Part $3$

$$Therefore$,$ you will prefer

$$

$2\mathrm{.}5\%$ every $6$ months for $3$ years

$5\%$ per year for $3$ years

$.($Select from the$$ drop$-$down menu.$)$

Part $4$

b$.$ An account that pays $7\mathrm{.}5\%7\mathrm{.}5\%$ every $1818$ months for $33$years$?$

If you deposit $ $1$$$1$ into a bank account that pays $7\mathrm{.}5\%7\mathrm{.}5\%$ every $1818$ months for $33$years$,$ the amount you will receive after $33$ years is $$$ enter your response here. $($Round to five decimal$$ places.$)$

Part $5$

$$Therefore$,$ you will prefer

$$

$7\mathrm{.}5\%$ every $18$ months for $3$ years

$5\%$ per year for $3$ years

$.($Select from the$$ drop$-$down menu.$)$

Part $6$

c$.$ An account that pays $0\mathrm{.}5\%0\mathrm{.}5\%$ per month for $33$years$?$

If you deposit $ $1$$$1$ into a bank account that pays $0\mathrm{.}5\%0\mathrm{.}5\%$ every month for $33$years$,$ the amount you will receive after $33$ years is $$$ enter your response here. $($Round to five decimal$$ places.$)$

Part $7$

$$Therefore$,$ you will prefer

$$

$5\%$ per year for $3$ years

$0\mathrm{.}5\%$ every month for $3$ years

$.($Select from the$$ drop$-$down menu.$)$