An Account Paying Annual Compound Interest Was Opened with $1,000

Multiple Choice

An account paying annual compound interest was opened with $1,000 ten years ago. Today, the account balance is $1,500. If the same interest rate is offered on an account paying simple interest, how much income would be earned each year over the same time period?

A) $36.97
B) $40.41
C) $40.75
D) $41.38
E) $50.00