Dale invests $500 in an account that pays 6% simple interest. How much more could he have earned over a thirty year period if the interest had compounded annually?
A) $1,471.75
B) $1,532.50
C) $1,621.25
D) $1,804.25
E) $2,371.75

Question

Quizplus · Accepted Answer

The correct answer is A because the difference in the amount earned over a thirty year period between simple interest and compound interest is $1,471.75.

Dale Invests $500 in an Account That Pays 6% Simple