Solve the Problem. -James Wants to Invest $8,000. He Can Invest the Money

question 167

Multiple Choice

Solve the problem.
-James wants to invest $8,000. He can invest the money at 7.2% simple interest for 30 yr or he can invest at 7% with interest compounded continuously for 30 yr. Which option results in more total
Interest?

• A) 7% compounded continuously results in more total interest
• B) 7.2% simple interest results in more total interest