Investigate the difference between compounding annually and simple interest for parts a-j. a. Find the simple interest

Question:

Investigate the difference between annually and simple interest for parts a-j.
a. Find the simple interest for a one-year CD for $5,000 at a 6% interest rate.
b. Find the interest for a one-year CD for $5,000 at an interest rate of 6%, compounded annually.
c. Compare the results from parts a and b.
d. Find the simple interest for a three-year CD for $5,000 at an interest rate of 6%.
e. Find the interest for a three-year CD for $5,000 at an interest rate of 6%, compounded annually.
f. Compare the results from parts d and e.
g. Find the simple interest for a six-year CD for $5,000 at an interest rate of 4%.
h. Find the interest for a six-year CD for $5,000 at an interest rate of 4%, compounded annually.
i. Compare the results from parts g and h.
j. Is interest compounded annually the same as simple interest? Explain. Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...