Two formulas:
Compound interest - A = P(1 + r/n)^nt
Simple interest = A = P(1 + rt)
A - final amount
P - initial principal balance
r - interest rate
n - number of times interest applied per time period
t - number of time periods elapsed
Suri --
A = 4,000(1+0.03/1)^5
A = $4,637.09
Carter --
A = 4,000(1+0.03*5)
A = $4,600
In 5 years, Suri makes $37.09 more than Carter