Dale invests $500 in an account that pays 6% simple interest. How much more could he have earned over a thirty year period if the interest had compounded annually?

A) $1,471.75
B) $1,532.50
C) $1,621.25
D) $1,804.25
E) $2,371.75

Simple Interest

Interest calculated only on the principal amount, or initial investment, not on the accumulated interest of previous periods.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.