Between simple interest at 5% and compound interest at 3%, determine which interest earning type will result in a higher balance when $3,200 is invested for 25 years. Find the difference in interest earnings between the two interest earning types.(1 point)

Question

Responses

Simple interest at 5% is the better interest earning type. The difference in interest earnings is $4,000.
Simple interest at 5% is the better interest earning type. The difference in interest earnings is $4,000. - no response given

Compound interest at 3% is the better interest earning type. The difference in interest earnings is $3,636.33.
Compound interest at 3% is the better interest earning type. The difference in interest earnings is $3,636.33. - no response given

Compound interest at 3% is the better interest earning type. The difference in interest earnings is $1,100.09.
Compound interest at 3% is the better interest earning type. The difference in interest earnings is $1,100.09. - incorrect

Simple interest at 5% is the better interest earning type. The difference in interest earnings is $499.91.
Simple interest at 5% is the better interest earning type. The difference in interest earnings is $499.91. - no response given

Answer 1

The correct response is: Compound interest at 3% is the better interest earning type. The difference in interest earnings is $3,636.33.

Answer 2

The correct answer is: Simple interest at 5% is the better interest earning type. The difference in interest earnings is $499.91.

Answer 3

I apologize for the mistake. You are correct. Simple interest at 5% is the better interest earning type. The difference in interest earnings is $499.91.