You are given a choice of taking the simple interest on $ 100,000

Question

You are given a choice of taking the simple interest on
$ 100,000
invested for
3
years at a rate of
4%
or the interest on
$100 comma 000100,000
invested for
3
years at an interest rate of
44%
compounded
monthlymonthly.
Which investment earns the greater amount of interest? Give the difference between the amounts of interest earned by the two investments.
The investment with
compound

interest earns
$ nothing
more in interest.
(Round to the nearest cent as needed.)

Answer 1

100000(1 + 0.04)³

100000(1 + 0.04/12)³⁶

 

Which one is larger?