Mathematics

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22 June, 17:30

Two savings accounts were each opened with a $7,000 deposit. Account A earns simple interest at a 1% annual interest rate. Account B earns compound interest at a 1% annual interest rate compounded yearly. No other deposits or withdrawals are made from the accounts for 3 years.

What is the difference in interest earnings between the two accounts after 3 years?

A) Both accounts will earn the same amount of interest.

B) Account A will earn approximately $2 more in interest than account B.

C) Account A will earn approximately $210 more in interest than account B.

D) Account A will earn approximately $2 less in interest than account B.

E) Account A will earn approximately $210 less in interest than account B.