Question: Identify whether the following statements about the simple and compound interest methods are true or false. table [ [ Statement ] , [ The
Identify whether the following statements about the simple and compound interest methods are true or false.
tableStatementThe process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods.After the end of the second year and all other factors remaining equal, a future value based on compound interest willnever exceed the future value based on simple interest.All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount ofearned interest by the end of the first year.
Nicholai is willing to invest $ for six years, and is an economically rational investor. He has identified three investment alternatives A B and C that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the sixyear investment period, complete the following table and indicate whether Nicholai 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.
tableInvestmentInterest Rate and Method,Expected Future Value,Make this investment?A simple interest,$B compound interest,,C compound interest,,
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