Question

Ben is choosing between two savings accounts. Both accounts pay 3% interest. Account X pays compound interest, while Account Y pays simple interest. Ben should choose Account X because A. the interest would be tax free. B. the interest rate would increase over time. C. it would pay interest on interest. D. the interest rate would decrease over time.

Answer 1

C. As compound interest includes interest on interest, and pays better than simple interest.

Hope this helps!

Answer 2

Your answer would be c