Amount invested Balance increase

Account A $500 6% annual interest

Account B $1,000 $25 per year

Two investments were made as shown in the table above. The interest in Account A is compounded once per year. Which of the following is true about the investments?

Question

	Amount invested	Balance increase
Account A	$500	6% annual interest
Account B	$1,000	$25 per year

Accepted Answer

Account A always earns more money per year than Account B

Answer

Account A always earns less money per year than Account B.

Answer

Account A earns more money per year than Account B at first but eventually earns less money per year.

Answer

Account A earns less money per year than Account B at first but eventually earns more money per year.