If you have a choice to earn simple interest on $10,000 for three years at 8% or

Question:

If you have a choice to earn simple interest on $10,000 for three years at 8% or annually compounded interest at 7.5% for three years which one will pay more and by how much?
a. Simple interest by $50.00
b. by $22.97
c. by $150.75
d. by $150.00
e. None of the above.
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...