using Compound interest? Simple interest? O FV = PV x (1 + I)N FV = PV / (1 + I)N FV = PV + (PV x I x N) O FV = PV / (1xIxN) OFV - PV x (PV x IxN) OFV - PV + (PVxIxN) Identify whether the following statements about the simple and compound interest methods are true or false. True False Statement The process of earning simple interest does not allow a depositor or investor to earn interest on any previously earned interest. Everything else held constant, an account that earns compound interest will grow more quickly than an otherwise identical account that earns simple 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. Dimitri is willing to invest $30,000 for six years and is an economically rational investor. He has identified three investment alternatives (A, B, and C) that vary in their method of calculating interest and in the annual interest rate offered. Since he can make only one investment during the six-year investment period, complete the following tabi and indicate whether Dimitri 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. Make This Dimitri is willing to invest $30,000 for six years and is an economically rational investor. He has identified three investment alternatives (A, B, and C) that vary in their method of calculating interest and in the annual interest rate offered. Since he can make only one investment during the six-year investment period, complete the following table and indicate whether Dimitri 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. Make This Investment? Investment Interest Rate and Method Expected Future Value Yes No o O B 10% simple interest 6% compound interest 7% compound interest Olo