Jesse invests $1000 for 2 years in an investment that bears 8% interest compounded
annually. On the same day that Jesse invests his money, Shirley invests $1000 in a simple
interest account with an interest rate of 8%. On the date of maturity, Shirley re-invests her
money, including the interest, for a second year. Without using calculations, explain which
person, if either, has made the more profitable investment.

Question

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The Answer of Jesse invests $1000 for 2 years in an investment that bears 8% interest compounded
annually. On the same day that Jesse invests his money, Shirley invests $1000 in a simple
interest account with an interest rate of 8%. On the date of maturity, Shirley re-invests her
money, including the interest, for a second year. Without using calculations, explain which
person, if either, has made the more profitable investment.

Jesse Invests $1000 for 2 Years in an Investment That