Stanley deposits $1,000 into a savings account that pays 1% interest. At the end of the first year, he's earned $10

in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two

would be based off ____________. If the account has compounding interest, the 1% interest for year two would

be based off ________________.(NOTE: The first choice goes in the first blank, the second choice goes in the

second blank)

Group of answer choices

1. The original deposit ($1,000); The year one account balance ($1,010)

2. The original deposit ($1,000); The year one interest ($10)

3. The year one account balance ($1,010); The year one interest ($10)

4. The year one account balance ($1,010); The original deposit ($1,000)