An Account Paying Annual Compound Interest Was Opened with $1,000

question 19

Multiple Choice

An account paying annual compound interest was opened with $1,000 ten years ago. Today, the account balance is $1,500. If the same interest rate is offered on an account paying simple interest, how much income would be earned over the same time period?

• A) $86.20
• B) $92.47
• C) $413.80
• D) $436.29
• E) $500.00

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