You Have Two Options 1) Invest $ 1,000 at 5

Multiple Choice

You have two options 1) invest $ 1,000 at 5% simple interest for two years or 2) invest $ 900 for two years at 5% compounded annually. What is the total amount of interest to be received under each scenario?

A) 1 - $ 100; 2 - $ 90
B) 1 - $ 102.50; 2 - $ 92.25
C) 1 - $ 102.50; 2 - $ 90
D) 1 - $ 100; 2 - $ 92.25