If $ 5,000 is invested in an account that earns 12% interest compounded semi-annually, then the interest earned after one year would be how much greater than if the $ 5,000 had been invested at 8% simple yearly interest? Choose one
A) $ 4	B) $ 8	C) $ 12	D) $ 16	E) $ 432
Solution   Amount ($ 12I) = P+(1+r/n)^nt = 5000+(1+0.12/2)^2= 5412   Amount (SI) = P+PTR/100 = 5000+(5000*1*12/100)=5400   Difference = 5412-5400= 
<gadget id="calculator">5412-5400</gadget>
<output>12</output>
12 $   $ 12
<result>C</result>
If $ 5,000 is invested in an account that earns 12% interest compounded semi-annually, then the interest earned after one year would be how much greater than if the $ 5,000 had been invested at 8% simple yearly interest?