Compare simple interest at 3% and compound interest at 2% with interest being compounded monthly when $750 is invested for 1 year to determine which interest earning type offers more financial gains.(1 point)
Responses
Compound interest at 2% offers more financial gains.
Compound interest at 2% offers more financial gains.
Simple interest at 3% offers more financial gains.
Simple interest at 3% offers more financial gains.
There is not enough information to determine which interest earning type offers more financial gains.
There is not enough information to determine which interest earning type offers more financial gains.
Both simple interest at 3% and compound interest at 2% with interest being compounded monthly offer the same amount of financial gain after 1 year of investment.
1 answer
The correct answer is: Simple interest at 3% offers more financial gains.
1 answer