Given the following two investments:\ Investment X:

$2,000

invested at

6%

simple interest rate.\ Investment Y:

$1,000

invested at

5%

interest rate with interest compounded annually.\ Assume no money is ever withdrawn from either investment. Which of the following is true?\

x

will always have a higher balance because it has a higher principal and higher interest rate.\

Y

will have a higher balance than

x

after certain number of years.

Given the following two investments: Investment X : $2,000 invested at 6% simple interest rate. Investment Y: $1,000 invested at 5% interest rate with interest compounded annually. Assume no money is ever withdrawn from either investment. Which of the following is true? X will always have a higher balance because it has a higher principal and higher interest rate. Y will have a higher balance than X after certain number of years