Scott Has $4,800 That He Wants to Invest for 3

Multiple Choice

Scott has $4,800 that he wants to invest for 3 years. He can invest this amount at his credit union and earn 4 percent simple interest. Or, he can open an account at Trust Bank and earn 3.65 percent interest, compounded annually. If he decides to invest at Trust Bank for 3 years, he will:

A) earn $15.02 more than if he had invested with his credit union.
B) earn $30.98 less than if he had invested with his credit union.
C) earn the same amount as if he had invested with the credit union.
D) have a total balance of $4,992 in his account after one year.
E) have a total balance of $4,876 in his account after one year.