Serenity wants to invest $25,000 of her savings for her retirement fund. Between a 7% simple interest rate and a 5% compound interest rate with interest being compounded quarterly, which one is the better type of interest earning if Serenity invests her money for 28 years? Find the difference in interest earnings between the two types.(1 point)
Responses
Compound interest is the better interest earning type. The difference in interest earnings between the two types is $26,504.10.
Compound interest is the better interest earning type. The difference in interest earnings between the two types is $26,504.10.
Simple interest is the better interest earning type. The difference in interest earnings between the two types is $26,504.10.
Simple interest is the better interest earning type. The difference in interest earnings between the two types is $26,504.10.
Compound interest is the better interest earning type. The difference in interest earnings between the two types is $26,216.94.
Compound interest is the better interest earning type. The difference in interest earnings between the two types is $26,216.94.
Compound interest is the better interest earning type. The difference in interest earnings between the two types is $100,504.05.