Answer:
Option B.
Step-by-step explanation:
Eric states the applied interest is simple interest. We need to check whether the this statement is true or false.
In simple interest, the amount of deposit increased at a constant rate. It means the difference between future values of any two consecutive years will same.
Difference between future values of first two years.
[tex]d_1=210.13-205.00=5.13[/tex]
Difference between future values of 2nd and 3rd year is
[tex]d_2=215.38-210.13=5.25[/tex]
Since d₁≠d₂, therefore, the given statement is false.
Thus, the correct option is B.
