An aunt gifts you with $12,000, but only after you invest it for one year. She gives you two choices. 1. Invest the entire sum at 4.2% compounded monthly. 2. Invest $1000 at 7.1% each month in an...

An aunt gifts you with $12,000, but only after you invest it for one year. She gives
you two choices.
1. Invest the entire sum at 4.2% compounded monthly.
2. Invest $1000 at 7.1% each month in an annuity that pays every month.
(a) What is the future value of the money invested with method 1?
(b) How much interest is earned with method 1?
(c) What is the future value of the money invested with method 2?
(d) How much interest is earned with method 2?
(e) Which method would you choose?