Statement

True

False

After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest.

All other variables held constant, investments paying simple interest have to pay significantly higher interest rates to earn the same amount of interest as an account earning compound interest.

All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year.

Alek is willing to invest $$30,000$ for eight years, and is an economically rational investor. He has identified three investment alternatives $($A$,$ B$,$ and that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the eight$-$year investment period, complete the following table and indicate whether Alek should invest in each of the investments.

Note: When calculating each investment's future value, assume that all interest is earned annually. The final value should be rounded to the nearest whole dollar.