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You are given a choice of taking the simple interest on ​$100,000 invested for 2 years at a rate of 4​% or the interest on ​$100,000 invested for 2 years at an interest rate of 4 ​% compounded . Which investment earns the greater amount of​ interest? Give the difference between the amounts of interest earned by the two investments.

Respuesta :

gamer747
Firstly, simple intraday is entreat on the base value, and not on the added I trest value,

Hence, the most monetary valued answer would be the second option as it gives compounding interest which is when the interest is applied to the money created by interest, unlike simple interest

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