On a certain day, Tim invested $600 at 10 percent annual interest, compounded annually, and Lana invested 1,000 at 5 percent annual interest, compounded annually.The total amount of interest earned by Tim’s investment in the first 2 years was how much greater than the total amount of interest earned by Lana’s investment in the first 2 years?  Select
A) $5.5	B) $15.5	C) $23.5	D) $100	E) $105
Compounded annually means that the interest is applied once per year. One can have 10% annual interest compounded monthly - in this case 10%/12 would be applied each month, or 10% annual interest compounded daily etc.   With respect to the problem at hand, at the end of two years, Tim would have   600(1.10)^2 = 600(1.21) = 726   and Lana would have   1,000(1.05)^2 = 1,000(1.1025) = 1102.5   Thus, Tim earned 126 dollars, while Lana earned 102.5 dollars   The difference is $23.5 and the answer is $23.5.
<result>C</result>
On a certain day, Tim invested $600 at 10 percent annual interest, compounded annually, and Lana invested 1,000 at 5 percent annual interest, compounded annually.The total amount of interest earned by Tim’s investment in the first 2 years was how much greater than the total amount of interest earned by Lana’s investment in the first 2 years?