You have two options 1) invest $ 10,000 at 5% simple interest for two years or 2) invest $ 9,000 for two years at 5% compounded annually. What is the total amount of interest to be received under each scenario?
A) 1 - $ 1,000, 2 - $ 900
B) 1 - $ 1,025, 2 - $ 922.50
C) 1 - $ 1,025, 2 - $ 900
D) 1 - $ 1,000, 2 - $ 922.50
Correct Answer:
Verified
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