7. An investor has a choice of investing a sum of money using two investment plans. For Plan 1, he invests his money at 4% compounded annually; for Plan 2, he invests his money at 3.75% semi-annually. a. Which of the two plans is more favorable to the investor? b. If the investor chooses Plan 1, after how many years will the initial sum be increased by 50%? c. Suppose that the investor starts with an initial sum of € 30 000 and that he follows Plan 1. Write down a function equation to calculate the one-year interest earned at the end of year t.

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