Which of the following is true concerning the difference between simple and compound interest?

A)

Simple interest always leads to a higher ending investment value when compared to compound interest.

B)

With simple interest, the assumption is that interest earned on the original investment is not reinvested. With compound interest, interest is reinvested.

C)

With compound interest, interest is earned only on the original investment whereas with simple interest, interest is earned on both the original investment and the accumulated interest.

D)

With compound interest, interest is earned only on the original investment whereas with simple interest, interest is earned on interest.

E)

Simple interest and compound interest always lead to the same ending investment value so there is no difference between the two methods