A principal amount of $5,000 will be placed in a savings account. A simple interest account earns an annual percentage rate of 6.8%, while a compound interest account has an APR of 3.7% compounded quarterly. Which account has a larger balance after 20 years?
The compound interest account has a larger balance of $11,800.
The simple interest account has a larger balance of $10,444.09.
The simple interest account has a larger balance of $11,800.
The compound interest account has a larger balance of $10,444.09.