Question: You have two options for investing $500. The first earns 7% interest compounded annually, and the second earns 7% simple interest. The figure shows the

You have two options for investing $500. The first earns 7% interest compounded annually, and the second earns 7% simple interest. The figure shows the growth of each investment over a 30-year period.
(a) Determine which graph represents each type of investment. Explain your reasoning.

(b) Verify your answer in part (a) by finding the equations that model the investment growth and by graphing the models.
(c) Which option would you choose? Explain.

4000 3000 2000 1000 + 15 + 25 10 30 Year Investment (in dollars)

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