Alice deposited $3,000 today into an account that pays 5% interest, compounded annually. Bob also deposited $3,000 today into an account that pays 5% interest, compounded annually. Alice will withdraw her interest earnings and spend it as soon as possible. Bob will reinvest his interest earnings into his accont. With this information, which one of the following statements is true? (Briefly explain your choice.)
A. Bob will earn more interest the second year than Alice.
B. Alice will earn compound interest.
C. Alice will earn more interest in year three than Bob will
D. Bob will earn more interest the first year than Alice will
E. After five years, Alice and Bob will both have earned the same amount of interest