You Have Two Options 1) Invest $ 1,000 at 5

question 34

Multiple Choice

You have two options 1) invest $ 1,000 at 5% simple interest for two years or 2) invest $ 900 for two years at 5% compounded annually. What is the total amount of interest to be received under each scenario?

• A) 1 - $ 100; 2 - $ 90
• B) 1 - $ 102.50; 2 - $ 92.25
• C) 1 - $ 102.50; 2 - $ 90
• D) 1 - $ 100; 2 - $ 92.25

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The ability to acquire, understand, and use knowledge, including the capability to reason, solve problems, learn from experience, and adapt to new situations.

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