The I.C. James Co. invested $10,000 six years ago at 5% simple interest. The I.M. Smart Co.
invested $10,000 six years ago at 5% interest which is compounded annually. Both the I.C. James
Co. and the I.M. Smart Co. will earn $500 interest in the ﬁrst year.

Question

Quizplus · Accepted Answer

Both companies invested the same amount and earned the same interest rate in the first year. Therefore, they both earned $500 interest in the first year.

The IC James Co