Compound interest:

		provides a value that is less than simple interest.
		is the same as simple interest.
		does not allow for the reinvestment of interest payments.
		allows for the reinvestment of interest payments.
		Both allows for the reinvestment of interest payments and provides a value that is less than simple interest.

If you have a choice to earn simple interest on $20,000 for three years at 8% or annually compounded interest at 7.5% for three years which one will pay more and by how much?

		Compound interest by $150.75
		Compound interest by 45.93
		Compound interest by $150.00
		Compound interest by $22.97
		Simple interest by $50.00