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Bob invested $11,500 in a 4-year CD at 5.5% interest compounded annually. Using simple interest, the CD will be worth $12,660 at maturity. Using compound interest, the CD will be worth $12,778.80 at maturity, which is $118.80 more than using simple interest.

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Simple & Compound Interest a. Bob invests $11,500 in a 4 year Certificate of Deposit (CD) at the bank with an interest rate of 5.5%. Using simple interest with an annual period, what will the CD be worth at the maturity date? b. What will the same CD be worth, using COMPOUND interest, at maturity? How much more (or less) will be made using compound interest?

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