Question: Centre Bank pays 2 . 5 percent interest, compounded annually, on its savings accounts. Country Bank pays 2 . 5 percent simple interest on its

Centre Bank pays 2.5 percent interest, compounded annually, on its savings accounts. Country Bank pays 2.5 percent simple interest on its savings accounts. You want to deposit sufficient funds today so that you will have $1,500 in your account 2 years from today. Which of the following statements is true?
The amount you must deposit today is higher if you invest with Country Bank.
The amount you must deposit today is higher if you invest with Centre Bank.
The amount you must deposit today is the same regardless of which bank you choose because the time period is the same for both banks.
The amount you'must deposit today is the same regardless of which bank you choose because they both pay simple interest.
The amount you must deposit today is the same regardless of which bank you choose because they both pay compound interest.
Centre Bank pays 2.5 percent interest, compounded annually, on its savings

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