3. Jacosta is investing $30,000.00 for her son's college fund in less than four years. She needs to have $35,000.00 by the end of July of the fourth year to pay his fall tuition.
a.
Her first option is to invest it at a 4.42% nominal interest rate compounded quarterly, and
withdraw the money after the second quarter (so in 3%2 years). Express the amount of money
she has at any given time in years as a function of t. (2 points)
b. Alternatively, she could invest it at a 4.40% nominal interest rate compounded continuously, and
be able to withdraw the money a bit later, at the end of July (that being 3 years and 213 days).
Express this too as a function of t in years. [2 points]
C. If she needs $35,000.00 to pay her son's tuition by August of that year, which investment is the
better option? Please show all your work for both investments, and explain your choice.
[4 points)