If $ 5,000 is invested in an account that earns 4% 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?
Options
A) $ 4
B) $ 8
C) $ 12
D) $ 16
E) $ 432
Solution   $ 4mount (CI) = P+(1+r/n)^nt = 5000+(1+0.04/2)^2= 5404   $ 4mount (SI) = P+PTR/100 = 5000+(5000*1*4/100)=5400   Difference = 5404-5400= 
<gadget id="calculator">5404-5400</gadget>
<output>4</output>
4 $   $ 4
<result>A</result>
If $ 5,000 is invested in an account that earns 4% 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?