Karen is considering the following two investment choices. Do the necessary computation and determine which will give her the higher rate of return? Please note that we express 18 months as 1.5 year (18/12 =1.5)
I. Invest $1,000 in an account for 18 months to obtain a guaranteed amount of $1,100 at the end.
II. Invest $1,000 in an account for 18 months paying 6.8% (APR) with daily compounding.