In Lesson 3.7. you explored the Simple Interest formula, A P+Prt, which is used when interest does not compound. This is fairly rare, but is how Treasury Notes and some other specialized investments work. In this problem we will compare Simple Interest to Compound Interest, which you learned in this Lesson Recall from the lesson that when interest is compounded annually the compound interest formula is = P(1 + r). In both formulas, A is the Amount (total principal plus interest) you end up with, P is the Principal (starting amount), is the annual interest rate (quoted as a percent, but used as a decimal), and t is the time in years. A= a. Complete the table below to compare the amounts you would have if you invested $1000 at 5% with simple interest compared to $1000 at 5% compounded annually. Round to the nearest cent. Simple Interest Compound Interest 1 years 2 years $ $ 3 years 4 years 5 years s b. In the lesson you noticed that compound interest is an exponential model. What kind of model is simple interest? Select an answer c. In the long run, which method of receiving interest will result in more money being in the account. assuming the rate of interest is the same? Select an