Identify whether the following statements about the simple and compound interest methods are true or false.

Statement

All other variables held constant, investments paying simple interest have to pay significantly higher interest rates to earn the

same amount of interest as an account earning compound interest.

Everything else held constant, an account that earns compound interest will grow more quickly than an otherwise identical

account that earns simple interest.

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.

Fedor is willing to invest $$30,000$ for three years, and is an economically rational investor. He has identified three investment alternatives

that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during th

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. Do not round your intermediate calcu

final value should be rounded to the nearest whole dollar.