Anyone know how to do this??

For compound interest savings, what are the interest earnings for the lender the first year for $2,300 saved at 13% annual interest compounded annually?
A. $199
B. $299
C. $325
D. $330

Question

Anyone know how to do this?? 

For compound interest savings, what are the interest earnings for the lender the first year for $2,300 saved at 13% annual interest compounded annually? 
	A.	$199
	B.	$299
	C.	$325
	D.	$330

tkhunny · Answer

This is a very confusing question.  Compounding only one time for exactly one year is exactly the same is Simple Interest.

Simple Interest

2300 * 0.13 = 299

Compound

2300 * (1.13) - 2300 = 2599 - 2300 = 299

anonymous · Answer

Thanks @tkhunny!!