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Lee and Lyn both invested their birthday money. Lee put his money in a savings account that earned 8% simple interest annually. Lyn put her money in an account that earned 8% interest compounded annually.
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Lee and Lyn both invested their birthday money. Lee put his money in a savings account that earned 8% simple interest annually. Lyn put her money in an account that earned 8% interest compounded annually. Who made the better investment and why?

User Thomas Fritsch
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Lyn made a better investment.

Her money will grow quicker than Lee because the money grows by 8% annually, and then the next year 8% off of the new balance.

Lee's money will only grow by 8% from the original price.
User George Edwards
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