Which comparisons of simple interest and repeated growth are true? Select all that apply.
At 5% simple interest, 600 dollars becomes 660 dollars after 2 years.✓Bonne réponse
At 5% repeated yearly growth, 600 becomes 661.50 after 2 years.✓Bonne réponse
After 1 year, simple interest and repeated growth give different totals.
Repeated growth adds the same dollar amount in every year.
Explication
At 5% for two years, simple interest gives 600 + 2 × 30 = 660, while repeated growth gives 600 × 1.05 × 1.05 = 661.50. Both mechanisms match after one year, but only repeated growth increases the dollar gain in later years.