You have just received a bonus of 15,000 euros and have decided that you want to invest the

money. After discussing your options with your bank, you have narrowed it down to two options:

A. A savings account that provides 7% simple interest annually.

B. A savings account that provides 6.25% compounded interest annually.

Assume that the deposit is made in year 0 and payments are made at the end of periods with first

payment end of year 1.

Answer the following:

1. What is the difference between simple and compounded interest?

2. You have decided to leave the money in the account for 12 years. Which option should you

choose?

3. In which year does option B become more favorable than option A?

X + + a con x OX XXX Widtermsement par 1/2 - 1001 + 2. Given nample of a risk and return relationship Pterest Rate You have just received a bonus of 15.000 euros and have decided that you want to invest the money. After discussing your options with your bank you have narrowed it down to two options: A saving account that provides simple interest annually 3. A savings account that provides 6.25% compounded interest annually Assume that the deposit is made in year and payments are made at the end of periods with first sament end of ye 1 Answer the following 1. What is the difference between simple and compounded interest? 2. You have decided to leave the money in the account for 12 years. Which option should you choose? 3 which year does option become more favorable than option A? Show your calculations Part)-Cataludeting Great Comfort intre producing high end furniture in the USA and are looking to expand their operations. They have led their opportunities and are currently considering two potential ways of expanding the South America in China. They are only able to choose one of the two O "Sunny DOLL ES F6 F7 Fa 2 F9 F10 % Q F11 F12 A 58 &7 61 * ON Priser T 7 Y 8 ) 9 TYY 9 0 Il + U + P