Chris has $16,000 that she wants to invest for 1 year. She can invest it in Bank X and earn 5.50 percent simple interest. Or, she can open an account at Bank Y and earn 5.39 percent interest, compounded monthly. If Chris decides to invest at Bank X, she will:
| earn $17.60 more than if she had invested with Bank Y. |
| earn the same amount as if she had invested with Bank Y. |
have a total balance of $16,800 in her account after 1 year.
|
| have a total balance of $16,862.40 in her account after 1 year. |
| earn $4.03 less than if she had invested with Bank Y. |