Answer:
Step-by-step explanation:
the simple interest formula= principal* interest rate*time
simple interest : 100000*%2*2 years
simple interest= 4000 dollars
compound quarterly : A=principal(1+r/4)^t
since it is quarterly and have 4 quarters in a year, and 8 in two years.
compound quarterly: 100000(1+0.03/4)^8=106159.88
it is better to invest with compound interest because it add 6159 dollars in two years to the investment of 100000 dollars.
the difference between the interest: 6159.88-4000=2159.88
