Aryana wants to invest $43,000. She has two options. Option A gives her 6% compounded quarterly. Option B gives her 6% simple interest annually. Which option earns higher interest after 3 years and by how much?

Option A earns higher interest($84115.58)

the difference in interest between the two option is  $197.9

Step-by-step explanation:

 In the problem we are going to apply both the simple interest formula and compound interest formula and compare which has the best/higher returns

Given data

Principal P= $43,000

Rate r= 6%= 0.06

time t= 3years

n= 4 (applicable for compound interest compounded quarterly)

solving for option A gives her 6% compounded quarterly

the compound interest formula is

Interest is =$8411.58

solving for option B  which gives her 6% simple interest annually

the simple interest formula is

Interest is= $8213.68

calculating the diference in interest between the two options we have

= $197.9

Option A earns higher interest

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step-by-step explanation: