Question

Darian has $6000 to invest to save for college. He has two choices laid out in the table below. Will compound interest or simple interest make Darian more money, when time and interest rate are taken into consideration?

A)Compound Interest


B)The choices will give you the same outcome.


C)There is not enough information to make a decision.


D)Simple Interest

Answer 1

C)There is not enough information to make a decision.

Explanation:

simple interest

I= PRT

I = 6000* .07 * 6 = 2520

compound interest

I = P(1 + r/n) ^ nt

I = 6000(1 +

wait a minute

we don't know the compounding term

is it quarterly, annually, monthly??????