Investigate the difference between compounding annually and simple interest for parts a-j. Round to the nearest cent.

a. Find the simple interest for a 1-year CD for $5,000 at a 2.5% interest rate.

b. Find the interest for a 1-year CD for $5,000 at an interest rate of 2.5%,

compounded annually.

c. Compare the results from parts a and b.

d. Find the simple interest for a 3-year CD for $5,000 at an interest rate

of 2.5%.

e. Find the interest for a 3-year CD for $5,000 at an interest rate of 2.5%,

compounded annually.

f. Compare the results from parts d and e.

g. Find the simple interest for a 6-year CD for $5,000 at an interest rate of 2%.

h. Find the interest for a 6-year CD for $5,000 at an interest rate of 2%,

compounded annually.

i. Compare the results from parts g and h.

j. Is interest compounded annually the same as simple interest? Explain