1. Alpha Bank pays interest of 4 percent compounded annually. Beta Bank pays 4 percent simple interest.

Which one of the following statements is true if you invest $1,000 in each bank for five years?

a. Alpha Bank will pay you a total of $200 in interest over the five years.

b. Beta Bank will pay you more interest over the five years than Alpha Bank will.

c. Alpha Bank will pay you a total of $216.65 in simple interest.

d. Alpha Bank will pay you $16.65 of interest on interest.