Is the following scenario a simple interest problem, a compound interet problem or a sinking fund? Wayne deposits $600 into the account that earns 7% per year compounded monthly and leaves it there for 5 years. How much is in the account after 5 years? a. Simple interest problem

b. Compound interest problem

c. Sinking Fund

Why is this a compound interet or sinking fund problem? Check ALL that apply. 1. This is not a simple interest problem because interest is compounded.

2. This is a compound interest problem because there is a only one deposit and interest is compounded monthly..

3. This is a not sinking fund because there is only one deposit.