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Peter invests $100,000 in an account that pays 12% annual interest: the interest is paid once, at the end of the year.

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by Gmat_mission » Sun Sep 12, 2021 8:10 am
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Peter invests $100,000 in an account that pays 12% annual interest: the interest is paid once, at the end of the year. Martha invests $100,000 in an account that pays 12% annual interest, compounding monthly at the end of each month. At the end of one full year, compared to Peter's account, approximately how much more does Martha’s account have?

A. Zero
B. $68.25
C. $682.50
D. $6825.00
E. $68250.00

Answer: C

Source: Magoosh
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