Tom Has Two Investment Options

Multiple Choice

Tom has two investment options. He can either invest $3,000 in a friendʹs project or he can deposit the same amount in a bank that offers him an annual rate of interest of 6 percent. If he invests in his friendʹs project, he will receive $3,400 after 5 years.
-Refer to the scenario above. What will be the balance in Tom's account after 5 years if he deposits $3,000 in the bank?

A) $3,222.64
B) $3,400
C) $4,014.68
D) $4,111.78