$\triangle EFG \sim \triangle EAB$ because $FG \parallel AB.$ The ratio of $\triangle EFG$ to $\triangle EAB$ is $2:5$ since $AB=5$ and $FG=2$ from subtraction. If we let $h$ be the height of $\triangle EAB,$
\[\frac{2}{5} = \frac{h-3}{h}\]
\[2h = 5h-15\]
\[3h = 15\]
\[h = 5\]
The height is $5$ so the area of $\triangle EAB$ is $\frac{1}{2}(5)(5) = \boxed{\textbf{(D)}\ \frac{25}{2}}$.
In rectangle $ABCD, AB=5$ and $BC=3$. Points $F$ and $G$ are on $\overline{CD}$ so that $DF=1$ and $GC=2$. Lines $AF$ and $BG$ intersect at $E$. Find the area of $\triangle AEB$.


$\textbf{(A) } 10 \qquad\textbf{(B) } \frac{21}{2} \qquad\textbf{(C) } 12 \qquad\textbf{(D) } \frac{25}{2} \qquad\textbf{(E) } 15$