I'm so confused. Would someone walk me through how to solve this, please?

Scott harris can invest $7,000 in a 1-year cd that earns interest at an annual rate of 4 percent compounded monthly. the amount per $1.00 is 1.040742. he can also invest $7,000 in a 1-year cd at annual rate of 4 percent compounded quarterly. the amount per $1.00 is 1.040604. what is the difference in the amount of interest earned for each investment? a) $0.96 b) $0.81 c) $0.87 d) $0.88

Is the point (0, 8) on the x-axis or y-axis? how do you know?

Can someone show me step by step how to do this?