(FV) using: Compound interest? Simple interest? Identify whether the following statements about the simple and compound interest methods are true or false Statement True False After the end of the second year and all other factors remaining equal, a future value based on compound interest will exceed a future value based on simple interest. All other factors being equal, both the simple interest and the compound interest methods wil not generate the amount of earned interest by the end of the first year The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods Fedor is willing to invest $40,000 for six years, and is an economically rational investor. He has identified three investment alternatives (X, Y, and Z) that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the six-year investment period, complete the following table and indicate whether Fedor should invest in each of the investments Note: When calculating each investment's future value, assume that all interest is earned annually. The final value should be rounded to the nearest whole dollar Make this investment? Investment Interest Rate and MethodExpected Future Value Yes No 11% compound interest 13% compound interest 13% simple interest