Over a one- year period,the difference between the future value of $500 invested at 15% p.a.simple interest and $500 invested at 15% p.a.annually compounded interest will be _______________
A)$150.00
B)$1.50
C)$15.00
D)Nothing

Question

Quizplus · Accepted Answer

In one year, simple interest and annually compounded interest yield the same amount because compounding has no effect over a single period.

Over a One- Year Period,the Difference Between the Future Value