Answer
The $7\%,$ compounded monthly investment yields the greater return.
Work Step by Step
Monthly compounding, $ t=3,\quad r=0.0685,\quad n=12$:
$ A=12,000(1+\displaystyle \frac{0.07}{12})^{12(3)}={{\$}} 14, 795.11$
Continuous, $ t=5,\quad r=0.065$:
$ A=12,000e^{0.0685(3)}=14, 737.67$
The $7\%,$ compounded monthly investment yields the greater return.
