Final answer:
Jackie will earn $150 in simple interest, while Amber will earn $207.76 in compound interest after 3 years. The difference is $57.76, so Amber will earn $57.77 more.
Step-by-step explanation:
To compare the interest earned by Jackie and Amber after three years, we need to calculate the interest for each of them using the given rates.
Jackie's account earns 5% simple interest, so the interest earned would be $1000 * 0.05 * 3. This is equal to $150.
Amber's account earns 8% interest compounded annually. The formula for compound interest is:
A = P(1 + r/n)^(nt),
where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years. Plugging in the values, we get:
A = $800(1 + 0.08/1)^(1 * 3) = $800(1.08)^3 = $800 * 1.2597 = $1007.76.
The interest earned is $1007.76 - $800 = $207.76.
Therefore, Amber will have earned more interest after 3 years. The difference in the interest earned is $207.76 - $150 = $57.76. Therefore, the correct answer is D. Amber will have earned $57.77 more than Jackie after 3 years.